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 |
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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Top 10 Open Interest For Mar 15 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | SPX dividend | 6. | EWZ dividend | 1. | AMRN dividend | |
2. | EEM dividend | 7. | GE dividend | 2. | FIT dividend | |
3. | SPY dividend | 8. | LLY dividend | 3. | ASND dividend | |
4. | QQQ dividend | 9. | BAC dividend | 4. | IMGN dividend | |
5. | FXI dividend | 10. | GLD dividend | 5. | OSTK dividend |
Want more examples? ET Dividend | ETH Dividend