QRTEA Dividend Type Payments

Although QRTEA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on LIBERTY INTERACTIVE QVC GROUP SER A 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):

LIBERTY INTERACTIVE QVC GROUP SER A (QRTEA)
Bid Ask Last Change Volume P/E Market Cap
21.33 22.10 21.84 -0.12 1.4M 7.4 10B

QRTEA Dividend-Like Income Using Covered Calls

With QRTEA at 21.84, 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% 0.66 0.2
5% 1.09 0.3
10% 2.18 0.6

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 QRTEA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 22.50 0.30 36 0.8 0.40 (1.8%)
Oct 19 24.00 0.15 64 0.2 1.90 (8.7%)
5% Yield On QRTEA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 22.50 0.30 36 0.8 0.40 (1.8%)
Oct 19 23.00 0.35 64 0.5 0.90 (4.1%)
10% Yield On QRTEA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 22.50 0.30 36 0.8 0.40 (1.8%)
Oct 19 22.00 0.75 64 1.0 0.00 (0.0%)

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