EFSC Dividend
Although EFSC has a dividend of 0.26 with an ex-dividend date of Jun 14, you can sell covered calls on Enterprise Financial Services Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 1:00 PM ET):
| Enterprise Financial Services Corporation (EFSC) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 39.58 |
39.69 |
39.64 |
-0.07 |
94K |
7.8 |
1.5B |
EFSC Dividend-Like Income Using Covered Calls
With EFSC at 39.64, 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% |
1.19 |
0.3 |
| 5% |
1.98 |
0.5 |
| 10% |
3.96 |
1.1 |
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 EFSC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 17 |
40.00 |
0.50 |
25 |
2.0 |
0.31 (0.8%) |
| Jun 21 |
40.00 |
1.45 |
60 |
2.4 |
0.31 (0.8%) |
| 5% Yield On EFSC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 17 |
40.00 |
0.50 |
25 |
2.0 |
0.31 (0.8%) |
| Jun 21 |
40.00 |
1.45 |
60 |
2.4 |
0.31 (0.8%) |
| 10% Yield On EFSC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 17 |
40.00 |
0.50 |
25 |
2.0 |
0.31 (0.8%) |
| Jun 21 |
40.00 |
1.45 |
60 |
2.4 |
0.31 (0.8%) |
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