ESNT Dividend Type Payments
Although ESNT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Essent Group Ltd. Common Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| Essent Group Ltd. Common Shares (ESNT) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 54.94 | 59.89 | 57.02 | -0.83 | 927K | 8.5 | 5.9B |
ESNT Dividend-Like Income Using Covered Calls
With ESNT at 57.02, 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% | 1.71 | 0.5 |
| 5% | 2.85 | 0.8 |
| 10% | 5.70 | 1.6 |
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 ESNT Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 65.00 | 0.05 | 9 | 0.6 | 5.11 (9.0%) | |
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| Top 10 Open Interest For Aug 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | GLD dividend | 1. | AAOI dividend | |
| 2. | NVDA dividend | 7. | AMZN dividend | 2. | WULF dividend | |
| 3. | IWM dividend | 8. | TSLA dividend | 3. | SG dividend | |
| 4. | SPY dividend | 9. | INTC dividend | 4. | SERV dividend | |
| 5. | IBIT dividend | 10. | QQQ dividend | 5. | PCT dividend | |
Want more examples? ESI Dividend | ESPO Dividend
