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 |
| 48.00 | 59.92 | 53.86 | -0.31 | 406K | 8.3 | 5.8B |
ESNT Dividend-Like Income Using Covered Calls
With ESNT at 53.86, 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% | 1.62 | 0.4 |
| 5% | 2.69 | 0.7 |
| 10% | 5.39 | 1.5 |
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:
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| Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | QQQ dividend | 6. | EEM dividend | 1. | WOLF dividend | |
| 2. | HYG dividend | 7. | KWEB dividend | 2. | FSLY dividend | |
| 3. | IWM dividend | 8. | SLV dividend | 3. | INTC dividend | |
| 4. | SPY dividend | 9. | TSLA dividend | 4. | GRPN dividend | |
| 5. | FXI dividend | 10. | NVDA dividend | 5. | PENN dividend | |
Want more examples? ESI Dividend | ESPO Dividend
