ERO Dividend Type Payments
Although ERO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Ero Copper Corp. Common Shares 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):
Ero Copper Corp. Common Shares (ERO) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
18.74 | 21.50 | 20.44 | +0.05 | 453K | 21 | 0.0B |
ERO Dividend-Like Income Using Covered Calls
With ERO at 20.44, 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% | 0.61 | 0.2 |
5% | 1.02 | 0.3 |
10% | 2.04 | 0.6 |
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 ERO Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 22.50 | 0.25 | 17 | 1.5 | 1.00 (4.9%) | |
Oct 18 | 22.50 | 1.90 | 171 | 1.1 | 1.00 (4.9%) |
5% Yield On ERO Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 22.50 | 0.25 | 17 | 1.5 | 1.00 (4.9%) | |
Oct 18 | 22.50 | 1.90 | 171 | 1.1 | 1.00 (4.9%) |
10% Yield On ERO Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 22.50 | 0.25 | 17 | 1.5 | 1.00 (4.9%) | |
Oct 18 | 22.50 | 1.90 | 171 | 1.1 | 1.00 (4.9%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | EEM dividend | 1. | FSLY dividend | |
2. | QQQ dividend | 7. | KWEB dividend | 2. | WOLF dividend | |
3. | HYG dividend | 8. | TSLA dividend | 3. | DASH dividend | |
4. | SPY dividend | 9. | SLV dividend | 4. | CGC dividend | |
5. | FXI dividend | 10. | AMZN dividend | 5. | DKNG dividend |
Want more examples? ERJ Dividend | ERX Dividend