ORC Dividend

Although ORC has a dividend of 0.08 with an ex-dividend date of Mar 28, 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 Mon 4:16 PM ET):

Orchid Island Capital, Inc (ORC)
Bid Ask Last Change Volume P/E Market Cap
6.82 6.87 6.86 +0.08 396K - 0.3B

ORC Dividend-Like Income Using Covered Calls

With ORC at 6.86, 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% 0.34 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:

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

 
 
Top 10 Open Interest For Apr 18 Expiration     Top 5 High Yield
1.SPY dividend 6.USO dividend   1.MU dividend
2.EEM dividend 7.BMY dividend   2.ACB dividend
3.SPX dividend 8.AAPL dividend   3.BCRX dividend
4.QQQ dividend 9.IWM dividend   4.CRON dividend
5.FXI dividend 10.NIO dividend   5.FDX dividend

Want more examples? ORBK Dividend | ORCL Dividend