EIX Dividend Type Payments

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

Edison International (EIX)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
69.40	72.00	70.82	-0.03	3.7M	23	27B

EIX Dividend-Like Income Using Covered Calls

With EIX at 70.82, 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%	2.12	0.6
5%	3.54	1.0
10%	7.08	1.9

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 EIX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 17	72.50	0.80	24	3.3	0.50 (0.7%)
Jun 21	72.50	1.65	59	2.8	0.50 (0.7%)

5% Yield On EIX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 17	72.50	0.80	24	3.3	0.50 (0.7%)
Jun 21	72.50	1.65	59	2.8	0.50 (0.7%)

10% Yield On EIX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 17	72.50	0.80	24	3.3	0.50 (0.7%)
Jun 21	72.50	1.65	59	2.8	0.50 (0.7%)

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Want more examples? EIS Dividend | EJAN Dividend