EMN Dividend
Although EMN has a dividend of 0.83 with an ex-dividend date of Sep 15, you can sell covered calls on Eastman Chemical Company to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| Eastman Chemical Company (EMN) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 69.72 | 72.00 | 70.34 | +2.16 | 1.8M | 10 | 7.8B |
EMN Dividend-Like Income Using Covered Calls
With EMN at 70.34, 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% | 2.11 | 0.6 |
| 5% | 3.52 | 1.0 |
| 10% | 7.03 | 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 EMN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 75.00 | 1.05 | 50 | 2.1 | 3.00 (4.3%) | |
| Sep 19 | 75.00 | 0.25 | 22 | 1.1 | 3.00 (4.3%) | |
| 5% Yield On EMN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 75.00 | 1.05 | 50 | 2.1 | 3.00 (4.3%) | |
| Sep 19 | 75.00 | 0.25 | 22 | 1.1 | 3.00 (4.3%) | |
| 10% Yield On EMN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 75.00 | 1.05 | 50 | 2.1 | 3.00 (4.3%) | |
| Dec 19 | 75.00 | 3.10 | 113 | 2.7 | 3.00 (4.3%) | |
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| Top 10 Open Interest For Sep 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | ATYR dividend | |
| 2. | PCG dividend | 7. | FXI dividend | 2. | AEO dividend | |
| 3. | IWM dividend | 8. | QQQ dividend | 3. | LULU dividend | |
| 4. | SPY dividend | 9. | IBIT dividend | 4. | CIFR dividend | |
| 5. | EEM dividend | 10. | INTC dividend | 5. | AI dividend | |
Want more examples? EMM Dividend | EMNT Dividend
