EXPE Dividend

EXPEDIA dividend

Although EXPE has a dividend of 0.32 with an ex-dividend date of Aug 22, you can sell covered calls on EXPEDIA to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 11:10 AM ET):

EXPEDIA (EXPE)
Bid Ask Last Change Volume P/E Market Cap
131.67 131.71 131.71 +0.15 249K 74 20B

EXPE Dividend-Like Income Using Covered Calls

With EXPE at 131.71, 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% 3.95 1.1
5% 6.59 1.8
10% 13.17 3.6

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 EXPE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 135.00 0.10 4 2.5 3.29 (2.5%)
Aug 31 138.00 0.15 11 1.4 6.29 (4.8%)
5% Yield On EXPE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 135.00 0.10 4 2.5 3.29 (2.5%)
Aug 31 137.00 0.20 11 1.8 5.29 (4.0%)
10% Yield On EXPE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 134.00 0.20 4 5.0 2.29 (1.7%)
Aug 31 135.00 0.50 11 4.5 3.29 (2.5%)

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Want more examples? EXPD Dividend | EXPO Dividend