ETFC Dividend Type Payments
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 |
| 57.00 | 61.19 | 61.19 | -0.10 | 1.0M | 22 | 16B |
ETFC Dividend-Like Income Using Covered Calls
With ETFC at 61.19, 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% | 1.84 | 0.5 |
| 5% | 3.06 | 0.8 |
| 10% | 6.12 | 1.7 |
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 | |
| Aug 24 | 66.00 | 0.05 | 8 | 0.6 | 4.81 (7.9%) | |
| Aug 31 | 67.50 | 0.08 | 15 | 0.5 | 6.31 (10.3%) | |
| 5% Yield On ETFC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 24 | 65.00 | 0.08 | 8 | 1.0 | 3.81 (6.2%) | |
| Aug 31 | 65.50 | 0.15 | 15 | 1.0 | 4.31 (7.0%) | |
| 10% Yield On ETFC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 24 | 64.00 | 0.14 | 8 | 1.8 | 2.81 (4.6%) | |
| Aug 31 | 64.00 | 0.34 | 15 | 2.3 | 2.81 (4.6%) | |
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| Top 10 Open Interest For Sep 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | EEM dividend | 6. | GE dividend | 1. | COTY dividend | |
| 2. | SPY dividend | 7. | GLD dividend | 2. | LB dividend | |
| 3. | SPX dividend | 8. | FB dividend | 3. | AKRX dividend | |
| 4. | QQQ dividend | 9. | IWM dividend | 4. | UVXY dividend | |
| 5. | XLF dividend | 10. | GDX dividend | 5. | GPS dividend | |
Want more examples? ETE Dividend | ETH Dividend
