REYN Dividend Type Payments
Although REYN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Reynolds Consumer Products Inc. 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):
| Reynolds Consumer Products Inc. (REYN) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 21.00 | 23.94 | 23.40 | +0.32 | 630K | 16 | 4.9B |
REYN Dividend-Like Income Using Covered Calls
With REYN at 23.40, 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% | 0.70 | 0.2 |
| 5% | 1.17 | 0.3 |
| 10% | 2.34 | 0.6 |
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 REYN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 25.00 | 0.20 | 57 | 0.4 | 1.06 (4.5%) | |
| 5% Yield On REYN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 25.00 | 0.20 | 57 | 0.4 | 1.06 (4.5%) | |
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| Top 10 Open Interest For Sep 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | ATYR dividend | |
| 2. | PCG dividend | 7. | FXI dividend | 2. | DNTH dividend | |
| 3. | SPY dividend | 8. | QQQ dividend | 3. | MBX dividend | |
| 4. | IWM dividend | 9. | IBIT dividend | 4. | KSS dividend | |
| 5. | EEM dividend | 10. | INTC dividend | 5. | GTLB dividend | |
Want more examples? REXR Dividend | REZ Dividend
