RDN Dividend Type Payments

RADIAN GROUP dividend

Although RDN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on RADIAN GROUP 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):

RADIAN GROUP (RDN)
Bid Ask Last Change Volume P/E Market Cap
16.90 20.99 18.91 -0.25 635K 11 4.1B

RDN Dividend-Like Income Using Covered Calls

With RDN at 18.91, 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% 0.57 0.2
5% 0.95 0.3
10% 1.89 0.5

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 RDN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 21.00 0.10 29 0.3 0.01 (0.1%)
Feb 15 22.00 0.30 120 0.3 1.01 (5.3%)
5% Yield On RDN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 21.00 0.10 29 0.3 0.01 (0.1%)
Feb 15 21.00 0.55 120 0.5 0.01 (0.1%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Nov 16 Expiration     Top 5 High Yield
1.SPY dividend 6.SPX dividend   1.SNAP dividend
2.EWZ dividend 7.FXI dividend   2.TWTR dividend
3.EEM dividend 8.VXX dividend   3.AMRN dividend
4.PBR dividend 9.IWM dividend   4.AMD dividend
5.QQQ dividend 10.BAC dividend   5.UVXY dividend

Want more examples? RDIV Dividend | RDNT Dividend