RCI Dividend
Although RCI has a dividend of 0.37 with an ex-dividend date of Jun 7, you can sell covered calls on Rogers Communications, 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):
| Rogers Communications, Inc (RCI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 51.09 | 51.12 | 51.09 | -0.03 | 233K | - | 21B |
RCI Dividend-Like Income Using Covered Calls
With RCI at 51.09, 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% | 1.53 | 0.4 |
| 5% | 2.55 | 0.7 |
| 10% | 5.11 | 1.4 |
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 RCI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 18 | 55.00 | 0.75 | 155 | 0.5 | 3.88 (7.6%) | |
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| Top 10 Open Interest For Jun 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | FXI dividend | 1. | BCRX dividend | |
| 2. | SPX dividend | 7. | BAC dividend | 2. | CARA dividend | |
| 3. | EEM dividend | 8. | AAPL dividend | 3. | NIO dividend | |
| 4. | QQQ dividend | 9. | XLF dividend | 4. | LB dividend | |
| 5. | EWZ dividend | 10. | VXX dividend | 5. | FCAU dividend | |
Want more examples? RCD Dividend | RCII Dividend
