EXP Dividend

EAGLE MATERIALS dividend

Although EXP has a dividend of 0.10 with an ex-dividend date of Oct 4, 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 Fri 4:16 PM ET):

EAGLE MATERIALS (EXP)
Bid Ask Last Change Volume P/E Market Cap
94.38 102.00 94.39 -0.26 292K 17 4.5B

EXP Dividend-Like Income Using Covered Calls

With EXP at 94.39, 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% 2.83 0.8
5% 4.72 1.3
10% 9.44 2.6

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
Jan 18 110.00 1.25 155 0.8 8.00 (8.5%)
5% Yield On EXP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 105.00 2.30 155 1.5 3.00 (3.2%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.EEM dividend 6.GE dividend   1.COTY dividend
2.SPY dividend 7.GLD dividend   2.LB dividend
3.SPX dividend 8.FB dividend   3.AKRX dividend
4.QQQ dividend 9.IWM dividend   4.UVXY dividend
5.XLF dividend 10.GDX dividend   5.GPS dividend

Want more examples? EXLS Dividend | EXPD Dividend