QCOM Dividend

QUALCOMM Incorporated dividend

Although QCOM has a dividend of 0.85 with an ex-dividend date of May 30, you can sell covered calls on QUALCOMM Incorporated to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

QUALCOMM Incorporated (QCOM)
Bid Ask Last Change Volume P/E Market Cap
164.01 166.00 164.32 -4.26 7.9M 24 188B

QCOM Dividend-Like Income Using Covered Calls

With QCOM at 164.32, 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% 4.93 1.4
5% 8.22 2.3
10% 16.43 4.5

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 QCOM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 19 167.50 0.65 3 21.7 1.50 (0.9%)
Apr 26 167.50 2.10 10 21.0 1.50 (0.9%)
5% Yield On QCOM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 19 167.50 0.65 3 21.7 1.50 (0.9%)
Apr 26 167.50 2.10 10 21.0 1.50 (0.9%)
10% Yield On QCOM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 19 167.50 0.65 3 21.7 1.50 (0.9%)
Apr 26 167.50 2.10 10 21.0 1.50 (0.9%)

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

 
 
Top 10 Open Interest For Apr 19 Expiration     Top 5 High Yield
1.SPY dividend 6.TLT dividend   1.INFY dividend
2.IWM dividend 7.FXI dividend   2.DJT dividend
3.QQQ dividend 8.AAPL dividend   3.CVNA dividend
4.TSLA dividend 9.HYG dividend   4.FSLY dividend
5.SLV dividend 10.NVDA dividend   5.EYPT dividend

Want more examples? QCLN Dividend | QCRH Dividend