ORC Dividend
Although ORC has a dividend of 0.08 with an ex-dividend date of Oct 30, you can sell covered calls on ORCHID ISLAND CAPITAL INC 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):
| ORCHID ISLAND CAPITAL INC (ORC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 6.81 | 6.92 | 6.91 | +0.01 | 591K | - | 0.4B |
ORC Dividend-Like Income Using Covered Calls
With ORC at 6.91, 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% | 0.21 | 0.1 |
| 5% | 0.35 | 0.1 |
| 10% | 0.69 | 0.2 |
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:
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| Top 10 Open Interest For Nov 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | SPX dividend | 1. | SNAP dividend | |
| 2. | EWZ dividend | 7. | FXI dividend | 2. | TWTR dividend | |
| 3. | EEM dividend | 8. | VXX dividend | 3. | AMRN dividend | |
| 4. | PBR dividend | 9. | IWM dividend | 4. | AMD dividend | |
| 5. | QQQ dividend | 10. | BAC dividend | 5. | UVXY dividend | |
Want more examples? ORBK Dividend | ORCL Dividend
