EGY Dividend Type Payments

VAALCO Energy, Inc. dividend

Although EGY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on VAALCO Energy, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

VAALCO Energy, Inc. (EGY)
Bid Ask Last Change Volume P/E Market Cap
3.40 3.48 3.41 -0.04 816K 13 0.4B

EGY Dividend-Like Income Using Covered Calls

With EGY at 3.41, 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% 0.10 0.0
5% 0.17 0.0
10% 0.34 0.1

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 EGY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 4.00 0.05 121 0.0 0.52 (15.2%)
Jul 17 4.00 0.20 212 0.1 0.52 (15.2%)
5% Yield On EGY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 17 4.00 0.20 212 0.1 0.52 (15.2%)
Feb 20 4.00 0.05 65 0.1 0.52 (15.2%)
10% Yield On EGY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 17 4.00 0.20 212 0.1 0.52 (15.2%)

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