ES Dividend Type Payments
Although ES has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on EVERSOURCE ENERGY to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 3:40 PM ET):
| EVERSOURCE ENERGY (ES) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 62.28 | 62.29 | 62.28 | +0.32 | 1.4M | 20 | 20B |
ES Dividend-Like Income Using Covered Calls
With ES at 62.28, here's a table showing how big the annual "dividend" (ie. 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% | 1.87 | 0.5 |
| 5% | 3.11 | 0.9 |
| 10% | 6.23 | 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 | |
| Nov 16 | 65.00 | 0.20 | 31 | 0.6 | 2.71 (4.4%) | |
| Jan 18 | 65.00 | 0.60 | 94 | 0.6 | 2.71 (4.4%) | |
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| Top 10 Open Interest For Oct 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | PBR dividend | 1. | CLVS dividend | |
| 2. | SPX dividend | 7. | MU dividend | 2. | LLNW dividend | |
| 3. | QQQ dividend | 8. | FXI dividend | 3. | ERIC dividend | |
| 4. | EEM dividend | 9. | IWM dividend | 4. | SKX dividend | |
| 5. | BAC dividend | 10. | AMD dividend | 5. | UVXY dividend | |
Want more examples? ERY Dividend | ESBA Dividend
