ESS Dividend

Essex Property Trust, Inc dividend

Although ESS has a dividend of 1.95 with an ex-dividend date of Mar 28, you can sell covered calls on Essex Property Trust, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 12:35 PM ET):

Essex Property Trust, Inc (ESS)
Bid Ask Last Change Volume P/E Market Cap
291.59 291.90 291.70 +2.21 84K 49 19B

ESS Dividend-Like Income Using Covered Calls

With ESS at 291.70, 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% 8.75 2.4
5% 14.59 4.0
10% 29.17 8.0

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 ESS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 300.00 1.10 28 3.9 8.10 (2.8%)
May 17 310.00 1.40 57 2.5 18.10 (6.2%)
5% Yield On ESS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 300.00 3.80 57 6.7 8.10 (2.8%)
Jul 19 300.00 7.20 120 6.0 8.10 (2.8%)

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

 
Top 10 Open Interest For Apr 18 Expiration     Top 5 High Yield
1.SPY dividend 6.USO dividend   1.ACB dividend
2.EEM dividend 7.AAPL dividend   2.ROKU dividend
3.SPX dividend 8.BMY dividend   3.SQ dividend
4.QQQ dividend 9.IWM dividend   4.WDC dividend
5.FXI dividend 10.NIO dividend   5.BCRX dividend

Want more examples? ESRX Dividend | ESV Dividend