ES Dividend Type Payments
Although ES has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Eversource Energy (D/B/A) 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):
Eversource Energy (D/B/A) (ES) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
56.20 | 63.99 | 60.84 | +0.49 | 2.0M | - | 20B |
ES Dividend-Like Income Using Covered Calls
With ES at 60.84, 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% | 1.83 | 0.5 |
5% | 3.04 | 0.8 |
10% | 6.08 | 1.7 |
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 ES Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 65.00 | 0.25 | 24 | 1.0 | 1.01 (1.7%) | |
Jul 19 | 65.00 | 1.05 | 87 | 1.2 | 1.01 (1.7%) |
5% Yield On ES Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 65.00 | 0.25 | 24 | 1.0 | 1.01 (1.7%) | |
Jul 19 | 65.00 | 1.05 | 87 | 1.2 | 1.01 (1.7%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | EEM dividend | 1. | SNAP dividend | |
2. | HYG dividend | 7. | KWEB dividend | 2. | META dividend | |
3. | QQQ dividend | 8. | TSLA dividend | 3. | FSLY dividend | |
4. | SPY dividend | 9. | SLV dividend | 4. | CVNA dividend | |
5. | FXI dividend | 10. | EWZ dividend | 5. | PINS dividend |
Want more examples? ERY Dividend | ESBA Dividend