ETSY Dividend Type Payments
Although ETSY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Etsy, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| Etsy, Inc (ETSY) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 54.85 | 56.00 | 55.28 | +0.62 | 1.4M | 84 | 6.6B |
ETSY Dividend-Like Income Using Covered Calls
With ETSY at 55.28, 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% | 1.66 | 0.5 |
| 5% | 2.76 | 0.8 |
| 10% | 5.53 | 1.5 |
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 ETSY Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 15 | 75.00 | 0.25 | 25 | 1.0 | 19.00 (34.4%) | |
| Jun 21 | 85.00 | 0.75 | 123 | 0.6 | 29.00 (52.5%) | |
| 5% Yield On ETSY Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 15 | 75.00 | 0.25 | 25 | 1.0 | 19.00 (34.4%) | |
| Jun 21 | 80.00 | 1.10 | 123 | 0.9 | 24.00 (43.4%) | |
| 10% Yield On ETSY Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 15 | 70.00 | 0.60 | 25 | 2.4 | 14.00 (25.3%) | |
| Jun 21 | 70.00 | 2.50 | 123 | 2.0 | 14.00 (25.3%) | |
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| Top 10 Open Interest For Mar 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPX dividend | 6. | EWZ dividend | 1. | ROKU dividend | |
| 2. | EEM dividend | 7. | GE dividend | 2. | IQ dividend | |
| 3. | SPY dividend | 8. | BAC dividend | 3. | BHC dividend | |
| 4. | QQQ dividend | 9. | XOP dividend | 4. | DBX dividend | |
| 5. | FXI dividend | 10. | GLD dividend | 5. | VIPS dividend | |
Want more examples? ETR Dividend | EUDG Dividend
