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 Wed 4:16 PM ET):
D/B/A Royal Caribbean Cruises Ltd. (RCL) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
136.50 | 137.70 | 136.73 | +0.06 | 3.0M | 22 | 35B |
RCL Dividend-Like Income Using Covered Calls
With RCL at 136.73, 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% | 4.10 | 1.1 |
5% | 6.84 | 1.9 |
10% | 13.67 | 3.7 |
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 | |
Apr 26 | 138.00 | 2.62 | 3 | 87.3 | 0.30 (0.2%) | |
May 3 | 138.00 | 3.75 | 10 | 37.5 | 0.30 (0.2%) |
5% Yield On RCL Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 26 | 138.00 | 2.62 | 3 | 87.3 | 0.30 (0.2%) | |
May 3 | 138.00 | 3.75 | 10 | 37.5 | 0.30 (0.2%) |
10% Yield On RCL Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 26 | 138.00 | 2.62 | 3 | 87.3 | 0.30 (0.2%) | |
May 3 | 138.00 | 3.75 | 10 | 37.5 | 0.30 (0.2%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | EEM dividend | 1. | SNAP dividend | |
2. | HYG dividend | 7. | KWEB dividend | 2. | META dividend | |
3. | QQQ dividend | 8. | TSLA dividend | 3. | FSLY dividend | |
4. | SPY dividend | 9. | SLV dividend | 4. | CVNA dividend | |
5. | FXI dividend | 10. | EWZ dividend | 5. | PINS dividend |
Want more examples? RCKT Dividend | RCM Dividend