EXP Dividend Type Payments

EAGLE MATERIALS dividend

Although EXP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on EAGLE MATERIALS to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 2:10 PM ET):

EAGLE MATERIALS (EXP)
Bid Ask Last Change Volume P/E Market Cap
72.01 72.04 72.01 -0.88 338K 13 3.5B

EXP Dividend-Like Income Using Covered Calls

With EXP at 72.01, 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% 2.16 0.6
5% 3.60 1.0
10% 7.20 2.0

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 EXP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 82.50 0.20 26 0.8 10.46 (14.5%)
Dec 21 82.50 0.60 61 1.0 10.46 (14.5%)
5% Yield On EXP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 80.00 0.45 26 1.7 7.96 (11.1%)
Dec 21 80.00 0.95 61 1.6 7.96 (11.1%)
10% Yield On EXP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 77.50 0.90 26 3.5 5.46 (7.6%)
Dec 21 77.50 1.55 61 2.5 5.46 (7.6%)

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Want more examples? EXLS Dividend | EXPD Dividend