EXP Dividend Type Payments
Although EXP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Eagle Materials Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| Eagle Materials Inc (EXP) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 199.00 | 212.03 | 202.11 | -2.66 | 325K | 15 | 6.7B |
EXP Dividend-Like Income Using Covered Calls
With EXP at 202.11, here's a table showing how big the annual "dividend" (i.e. 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% | 6.06 | 1.7 |
| 5% | 10.11 | 2.8 |
| 10% | 20.21 | 5.5 |
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 EXP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 220.00 | 1.80 | 47 | 3.8 | 7.97 (3.9%) | |
| Oct 17 | 220.00 | 6.70 | 110 | 6.1 | 7.97 (3.9%) | |
| 5% Yield On EXP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 220.00 | 1.80 | 47 | 3.8 | 7.97 (3.9%) | |
| Oct 17 | 220.00 | 6.70 | 110 | 6.1 | 7.97 (3.9%) | |
| 10% Yield On EXP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 220.00 | 6.70 | 110 | 6.1 | 7.97 (3.9%) | |
| Nov 21 | 220.00 | 9.90 | 145 | 6.8 | 7.97 (3.9%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TLT dividend | 1. | COGT dividend | |
| 2. | SLV dividend | 7. | TSLA dividend | 2. | ENPH dividend | |
| 3. | SPY dividend | 8. | AAPL dividend | 3. | SERV dividend | |
| 4. | GLD dividend | 9. | FXI dividend | 4. | TMC dividend | |
| 5. | IWM dividend | 10. | QQQ dividend | 5. | CIFR dividend | |
Want more examples? EXLS Dividend | EXPD Dividend
