RCL Dividend

Although RCL has a dividend of 0.70 with an ex-dividend date of Dec 19, you can sell covered calls on Royal Caribbean Cruises to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

Royal Caribbean Cruises (RCL)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
102.00	111.30	104.86	-0.06	1.5M	-	0.0B

RCL Dividend-Like Income Using Covered Calls

With RCL at 104.86, 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%	3.15	0.9
5%	5.24	1.4
10%	10.49	2.9

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
Dec 14	114.00	0.05	5	1.0	2.70 (2.6%)
Dec 21	117.00	0.13	12	1.1	5.70 (5.4%)

5% Yield On RCL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 14	113.00	0.09	5	1.8	1.70 (1.6%)
Dec 21	116.00	0.19	12	1.6	4.70 (4.5%)

10% Yield On RCL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 14	112.00	0.15	5	3.0	0.70 (0.7%)
Dec 21	113.00	0.38	12	3.2	1.70 (1.6%)

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Top 10 Open Interest For Dec 21 Expiration				Top 5 High Yield
1.	DXPE dividend	6.	NXTM dividend	1.	dividend
2.	NVT dividend	7.	MTOR dividend	2.	dividend
3.	MSEX dividend	8.	WLTW dividend	3.	dividend
4.	WGP dividend	9.	EDZ dividend	4.	dividend
5.	ECH dividend	10.	ODFL dividend	5.	dividend

Want more examples? RCKT Dividend | RCMT Dividend