ERIE Dividend Type Payments
Although ERIE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Erie Indemnity Company - Class A 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):
Erie Indemnity Company - Class A (ERIE) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
151.86 | 607.42 | 380.46 | +2.27 | 37K | 24 | 18B |
ERIE Dividend-Like Income Using Covered Calls
With ERIE at 380.46, 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% | 11.41 | 3.1 |
5% | 19.02 | 5.2 |
10% | 38.05 | 10.4 |
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:
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | HYG dividend | 6. | KWEB dividend | 1. | VNDA dividend | |
2. | IWM dividend | 7. | EEM dividend | 2. | CVNA dividend | |
3. | FXI dividend | 8. | SLV dividend | 3. | DJT dividend | |
4. | SPY dividend | 9. | TSLA dividend | 4. | MPW dividend | |
5. | QQQ dividend | 10. | EWZ dividend | 5. | UPST dividend |
Want more examples? ERIC Dividend | ERII Dividend