EGP Dividend
Although EGP has a dividend of 0.72 with an ex-dividend date of Mar 28, you can sell covered calls on EastGroup Properties, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| EastGroup Properties, Inc (EGP) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 109.74 | 109.77 | 109.74 | -1.27 | 179K | 45 | 4.0B |
EGP Dividend-Like Income Using Covered Calls
With EGP at 109.74, 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% | 3.29 | 0.9 |
| 5% | 5.49 | 1.5 |
| 10% | 10.97 | 3.0 |
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 EGP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jun 21 | 110.00 | 1.00 | 96 | 1.0 | 0.23 (0.2%) | |
| Sep 20 | 115.00 | 2.10 | 187 | 1.1 | 5.23 (4.8%) | |
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| Top 10 Open Interest For Apr 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | USO dividend | 1. | MU dividend | |
| 2. | EEM dividend | 7. | BMY dividend | 2. | ACB dividend | |
| 3. | SPX dividend | 8. | AAPL dividend | 3. | BCRX dividend | |
| 4. | QQQ dividend | 9. | IWM dividend | 4. | CRON dividend | |
| 5. | FXI dividend | 10. | NIO dividend | 5. | FDX dividend | |
Want more examples? EGOV Dividend | EGPT Dividend
