RCL Dividend Type Payments
Although RCL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on D/B/A Royal Caribbean Cruises Ltd. 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):
D/B/A Royal Caribbean Cruises Ltd. (RCL) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
263.00 | 269.31 | 264.43 | -5.77 | 1.5M | 28 | 73B |
RCL Dividend-Like Income Using Covered Calls
With RCL at 264.43, 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% | 7.93 | 2.2 |
5% | 13.22 | 3.6 |
10% | 26.44 | 7.2 |
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 RCL Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Mar 7 | 270.00 | 6.95 | 29 | 24.0 | 0.69 (0.3%) | |
Feb 14 | 270.00 | 2.11 | 8 | 26.4 | 0.69 (0.3%) |
5% Yield On RCL Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Mar 7 | 270.00 | 6.95 | 29 | 24.0 | 0.69 (0.3%) | |
Feb 14 | 270.00 | 2.11 | 8 | 26.4 | 0.69 (0.3%) |
10% Yield On RCL Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Mar 7 | 270.00 | 6.95 | 29 | 24.0 | 0.69 (0.3%) | |
Feb 14 | 270.00 | 2.11 | 8 | 26.4 | 0.69 (0.3%) |
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Top 10 Open Interest For Feb 21 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | TSLA dividend | 1. | BBAI dividend | |
2. | SPY dividend | 7. | QQQ dividend | 2. | UPST dividend | |
3. | TLT dividend | 8. | SLV dividend | 3. | LYFT dividend | |
4. | IWM dividend | 9. | KWEB dividend | 4. | RGTI dividend | |
5. | FXI dividend | 10. | GLD dividend | 5. | QS dividend |
Want more examples? RCKT Dividend | RCUS Dividend