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 Tue 1:00 PM ET):
| D/B/A Royal Caribbean Cruises Ltd. (RCL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 311.76 | 312.29 | 312.02 | +9.19 | 627K | 23 | 82B |
RCL Dividend-Like Income Using Covered Calls
With RCL at 312.02, 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% | 9.36 | 2.6 |
| 5% | 15.60 | 4.3 |
| 10% | 31.20 | 8.5 |
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 RCL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 7 | 312.50 | 13.65 | 18 | 75.8 | 0.21 (0.1%) | |
| Nov 14 | 315.00 | 13.40 | 25 | 53.6 | 2.71 (0.9%) | |
| 5% Yield On RCL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 7 | 312.50 | 13.65 | 18 | 75.8 | 0.21 (0.1%) | |
| Nov 14 | 315.00 | 13.40 | 25 | 53.6 | 2.71 (0.9%) | |
| 10% Yield On RCL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 7 | 312.50 | 13.65 | 18 | 75.8 | 0.21 (0.1%) | |
| Nov 14 | 315.00 | 13.40 | 25 | 53.6 | 2.71 (0.9%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | KVUE dividend | 6. | HYG dividend | 1. | INBX dividend | |
| 2. | IBIT dividend | 7. | TLT dividend | 2. | ARCT dividend | |
| 3. | NVDA dividend | 8. | EEM dividend | 3. | BHVN dividend | |
| 4. | SLV dividend | 9. | QQQ dividend | 4. | CIFR dividend | |
| 5. | GLD dividend | 10. | INTC dividend | 5. | OSCR dividend | |
Want more examples? RCKT Dividend | RCUS Dividend
