EFX Dividend

EQUIFAX dividend

Although EFX has a dividend of 0.39 with an ex-dividend date of Aug 23, you can sell covered calls on EQUIFAX to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 3:00 PM ET):

EQUIFAX (EFX)
Bid Ask Last Change Volume P/E Market Cap
129.65 129.70 129.68 +0.84 283K 31 16B

EFX Dividend-Like Income Using Covered Calls

With EFX at 129.68, 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% 3.89 1.1
5% 6.48 1.8
10% 12.97 3.6

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 EFX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 133.00 0.05 4 1.3 3.30 (2.5%)
Aug 24 134.00 0.20 11 1.8 4.30 (3.3%)
5% Yield On EFX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 132.00 0.20 4 5.0 2.30 (1.8%)
Aug 24 134.00 0.20 11 1.8 4.30 (3.3%)
10% Yield On EFX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 132.00 0.20 4 5.0 2.30 (1.8%)
Aug 24 132.00 0.50 11 4.5 2.30 (1.8%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.BAC dividend   1.M dividend
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3.QQQ dividend 8.FXI dividend   3.VIAV dividend
4.SPX dividend 9.FB dividend   4.JWN dividend
5.XLF dividend 10.GLD dividend   5.CGC dividend

Want more examples? EFV Dividend | EFZ Dividend