ESRT Dividend

Although ESRT has a dividend of 0.04 with an ex-dividend date of Sep 15, you can sell covered calls on Empire State Realty Trust, Inc. Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 11:25 AM ET):

Empire State Realty Trust, Inc. Class A (ESRT)
Bid Ask Last Change Volume P/E Market Cap
7.32 7.33 7.33 -0.06 159K 25 1.2B

ESRT Dividend-Like Income Using Covered Calls

With ESRT at 7.33, 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% 0.22 0.1
5% 0.37 0.1
10% 0.73 0.2

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 ESRT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 7.50 0.20 43 0.5 0.17 (2.3%)
Dec 19 7.50 0.50 134 0.4 0.17 (2.3%)
5% Yield On ESRT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 7.50 0.20 43 0.5 0.17 (2.3%)
Dec 19 7.50 0.50 134 0.4 0.17 (2.3%)
10% Yield On ESRT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 7.50 0.20 43 0.5 0.17 (2.3%)
Dec 19 7.50 0.50 134 0.4 0.17 (2.3%)

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Want more examples? ESPR Dividend | ESS Dividend