RECN Dividend

RESOURCES CONNECTION dividend

Although RECN has a dividend of 0.13 with an ex-dividend date of Aug 22, you can sell covered calls on RESOURCES CONNECTION to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

RESOURCES CONNECTION (RECN)
Bid Ask Last Change Volume P/E Market Cap
15.95 16.10 16.05 +0.15 61K 26 0.5B

RECN Dividend-Like Income Using Covered Calls

With RECN at 16.05, 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% 0.48 0.1
5% 0.80 0.2
10% 1.61 0.4

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 RECN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 17.50 0.20 95 0.2 1.40 (8.7%)
Feb 15 17.50 0.50 186 0.3 1.40 (8.7%)
5% Yield On RECN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 15 17.50 0.50 186 0.3 1.40 (8.7%)

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

 
Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.BAC dividend   1.M dividend
2.EEM dividend 7.AABA dividend   2.UVXY dividend
3.QQQ dividend 8.FXI dividend   3.JWN dividend
4.SPX dividend 9.FB dividend   4.CGC dividend
5.XLF dividend 10.GLD dividend   5.A dividend

Want more examples? RE Dividend | REDU Dividend