IRBT Dividend Type Payments

IROBOT dividend

Although IRBT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on IROBOT 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):

IROBOT (IRBT)
Bid Ask Last Change Volume P/E Market Cap
90.56 99.40 90.85 +0.24 439K 44 2.4B

IRBT Dividend-Like Income Using Covered Calls

With IRBT at 90.85, 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% 2.73 0.7
5% 4.54 1.2
10% 9.09 2.5

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 IRBT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 101.00 0.05 5 1.0 1.60 (1.8%)
Oct 26 125.00 0.10 12 0.8 25.60 (28.2%)
5% Yield On IRBT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 122.00 0.15 12 1.3 22.60 (24.9%)
Nov 2 125.00 0.25 19 1.3 25.60 (28.2%)
10% Yield On IRBT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 119.00 0.30 12 2.5 19.60 (21.6%)
Nov 2 121.00 0.55 19 2.9 21.60 (23.8%)

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Want more examples? IR Dividend | IRDM Dividend