RBC Dividend Type Payments

Regal Beloit Corp dividend

Although RBC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Regal Beloit Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 10:55 AM ET):

Regal Beloit Corp (RBC)
Bid Ask Last Change Volume P/E Market Cap
81.40 81.47 81.42 -0.23 90K 14 3.5B

RBC Dividend-Like Income Using Covered Calls

With RBC at 81.42, 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% 2.44 0.7
5% 4.07 1.1
10% 8.14 2.2

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:

3% Yield On RBC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 85.00 0.90 31 2.9 3.53 (4.3%)
Nov 15 90.00 1.30 122 1.1 8.53 (10.5%)
5% Yield On RBC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 85.00 0.90 31 2.9 3.53 (4.3%)
Nov 15 85.00 2.85 122 2.3 3.53 (4.3%)
10% Yield On RBC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 85.00 0.90 31 2.9 3.53 (4.3%)
Nov 15 85.00 2.85 122 2.3 3.53 (4.3%)

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Want more examples? RBBN Dividend | RBCAA Dividend