ETN Dividend Type Payments

EATON PUBLIC dividend

Although ETN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on EATON PUBLIC 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):

EATON PUBLIC (ETN)
Bid Ask Last Change Volume P/E Market Cap
80.10 83.67 80.51 +0.88 2.0M 11 35B

ETN Dividend-Like Income Using Covered Calls

With ETN at 80.51, 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% 2.42 0.7
5% 4.03 1.1
10% 8.05 2.2

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 ETN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 14 84.00 0.20 30 0.7 0.33 (0.4%)
Sep 28 84.50 0.35 44 0.8 0.83 (1.0%)
5% Yield On ETN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 85.00 1.95 156 1.3 1.33 (1.7%)

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Want more examples? ETM Dividend | ETP Dividend