DOW Dividend

Although DOW has a dividend of 0.70 with an ex-dividend date of May 30, you can sell covered calls on Dow Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

Dow Inc. (DOW)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
29.80	30.65	30.59	-0.06	11.2M	75	22B

DOW Dividend-Like Income Using Covered Calls

With DOW at 30.59, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield	Annual Premium	Cents/Day
3%	0.92	0.3
5%	1.53	0.4
10%	3.06	0.8

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On DOW Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 2	30.50	0.39	3	8.0	0.00 (0.0%)
Jun 6	31.00	1.04	38	2.7	0.35 (1.1%)

5% Yield On DOW Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 2	30.50	0.39	3	8.0	0.00 (0.0%)
Jun 6	31.00	1.04	38	2.7	0.35 (1.1%)

10% Yield On DOW Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 2	30.50	0.39	3	8.0	0.00 (0.0%)
Jun 6	31.00	1.04	38	2.7	0.35 (1.1%)

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Top 10 Open Interest For May 16 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	GLD dividend	1.	ZETA dividend
2.	SPY dividend	7.	IWM dividend	2.	ENVX dividend
3.	TLT dividend	8.	FXI dividend	3.	HLF dividend
4.	SLV dividend	9.	SNAP dividend	4.	QCOM dividend
5.	QQQ dividend	10.	TSLA dividend	5.	RDDT dividend

Want more examples? DOV Dividend | DOX Dividend