EAF Dividend Type Payments

Although EAF has no upcoming (meaning, Board-approved and announced) dividends, 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 Tue 4:16 PM ET):

GRAFTECH INTL LTD (EAF)
Bid Ask Last Change Volume P/E Market Cap
17.42 18.75 17.98 +1.10 1.1M 11 4.9B

EAF Dividend-Like Income Using Covered Calls

With EAF at 17.98, 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% 0.54 0.1
5% 0.90 0.2
10% 1.80 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
Nov 16 25.00 0.05 32 0.2 6.25 (34.8%)
Jan 18 25.00 0.30 95 0.3 6.25 (34.8%)
5% Yield On EAF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 22.50 0.15 32 0.5 3.75 (20.9%)
Jan 18 25.00 0.30 95 0.3 6.25 (34.8%)
10% Yield On EAF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 20.00 0.65 32 2.0 1.25 (7.0%)
Jan 18 22.50 0.70 95 0.7 3.75 (20.9%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.BAC dividend   1.NBEV dividend
2.SPX dividend 7.MU dividend   2.CRON dividend
3.EEM dividend 8.FXI dividend   3.ARWR dividend
4.QQQ dividend 9.AMD dividend   4.TLRY dividend
5.PBR dividend 10.XLF dividend   5.IBM dividend

Want more examples? EA Dividend | EAT Dividend