ESE Dividend Type Payments

Although ESE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ESCO Technologies Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

ESCO Technologies Inc. (ESE)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
98.54	103.36	100.92	+2.24	202K	27	2.5B

ESE Dividend-Like Income Using Covered Calls

With ESE at 100.92, 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%	3.03	0.8
5%	5.05	1.4
10%	10.09	2.8

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 ESE Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jun 21	105.00	1.00	64	1.6	1.64 (1.6%)
Sep 20	105.00	4.00	155	2.6	1.64 (1.6%)

5% Yield On ESE Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jun 21	105.00	1.00	64	1.6	1.64 (1.6%)
Sep 20	105.00	4.00	155	2.6	1.64 (1.6%)

10% Yield On ESE Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	105.00	7.00	246	2.8	1.64 (1.6%)

Want to increase dividends with covered calls? Sign Up For A Free Trial

Top 10 Open Interest For May 17 Expiration				Top 5 High Yield
1.	HYG dividend	6.	KWEB dividend	1.	CVNA dividend
2.	IWM dividend	7.	EEM dividend	2.	FSLY dividend
3.	FXI dividend	8.	SLV dividend	3.	CLSK dividend
4.	QQQ dividend	9.	TSLA dividend	4.	MARA dividend
5.	SPY dividend	10.	EWZ dividend	5.	EYPT dividend

Want more examples? ESCA Dividend | ESGA Dividend