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 Thu 4:16 PM ET):

E*TRADE Financial Corp (ETFC)
Bid Ask Last Change Volume P/E Market Cap
44.03 44.22 44.26 -1.36 3.3M - 0.0B

ETFC Dividend-Like Income Using Covered Calls

With ETFC at 44.26, 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% 1.33 0.4
5% 2.21 0.6
10% 4.43 1.2

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 ETFC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 49.00 0.05 9 0.6 4.78 (10.8%)
Dec 28 49.50 0.06 16 0.4 5.28 (11.9%)
5% Yield On ETFC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 48.50 0.07 9 0.8 4.28 (9.7%)
Dec 28 48.50 0.13 16 0.8 4.28 (9.7%)
10% Yield On ETFC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 47.50 0.13 9 1.4 3.28 (7.4%)
Dec 28 47.50 0.23 16 1.4 3.28 (7.4%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
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4.QQQ dividend 9.VXX dividend   4. dividend
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Want more examples? ET Dividend | ETH Dividend