ERIE Dividend

Although ERIE has a dividend of 1.37 with an ex-dividend date of Jul 8, 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 Mon 4:16 PM ET):

Erie Indemnity Company - Class A (ERIE)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
334.00	349.00	346.79	+6.34	130K	32	16B

ERIE Dividend-Like Income Using Covered Calls

With ERIE at 346.79, 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%	10.40	2.9
5%	17.34	4.8
10%	34.68	9.5

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 ERIE Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	350.00	12.00	47	25.5	1.00 (0.3%)
Jul 18	350.00	4.20	19	22.1	1.00 (0.3%)

5% Yield On ERIE Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	350.00	12.00	47	25.5	1.00 (0.3%)
Jul 18	350.00	4.20	19	22.1	1.00 (0.3%)

10% Yield On ERIE Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	350.00	12.00	47	25.5	1.00 (0.3%)
Jul 18	350.00	4.20	19	22.1	1.00 (0.3%)

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Want more examples? ERIC Dividend | ERII Dividend