EAF Dividend

Although EAF has a dividend of 0.09 with an ex-dividend date of Aug 30, you can sell covered calls on GRAFTECH INTL LTD to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

GRAFTECH INTL LTD (EAF)
Bid Ask Last Change Volume P/E Market Cap
17.34 18.45 17.55 -0.50 2.4M 11 5.2B

EAF Dividend-Like Income Using Covered Calls

With EAF at 17.55, here's a table showing how big the annual "dividend" (ie. 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% 0.53 0.1
5% 0.88 0.2
10% 1.76 0.5

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 EAF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 20.00 0.25 36 0.7 1.55 (8.8%)
Oct 19 22.50 0.10 64 0.2 4.05 (23.1%)
5% Yield On EAF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 20.00 0.25 36 0.7 1.55 (8.8%)
Oct 19 20.00 0.50 64 0.8 1.55 (8.8%)
10% Yield On EAF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 20.00 0.25 36 0.7 1.55 (8.8%)
Oct 19 20.00 0.50 64 0.8 1.55 (8.8%)

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Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.EEM dividend 6.GE dividend   1.COTY dividend
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Want more examples? EA Dividend | EAT Dividend