ETFC Dividend Type Payments

E*TRADE Financial Corp dividend

Although ETFC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on E*TRADE Financial Corp 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):

E*TRADE Financial Corp (ETFC)
Bid Ask Last Change Volume P/E Market Cap
47.07 49.84 48.89 +0.66 2.8M 12 12B

ETFC Dividend-Like Income Using Covered Calls

With ETFC at 48.89, 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% 1.47 0.4
5% 2.44 0.7
10% 4.89 1.3

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 ETFC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 1 51.00 0.06 8 0.8 1.16 (2.4%)
Mar 8 52.00 0.09 15 0.6 2.16 (4.4%)
5% Yield On ETFC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 1 51.00 0.06 8 0.8 1.16 (2.4%)
Mar 8 51.50 0.14 15 0.9 1.66 (3.4%)
10% Yield On ETFC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 1 50.00 0.22 8 2.8 0.16 (0.3%)
Mar 8 51.00 0.21 15 1.4 1.16 (2.4%)

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Want more examples? ET Dividend | ETH Dividend