RKT Dividend Type Payments

Rocket Companies, Inc. Class A dividend

Although RKT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Rocket Companies, Inc. Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 10:50 AM ET):

Rocket Companies, Inc. Class A (RKT)
Bid Ask Last Change Volume P/E Market Cap
21.14 21.15 21.15 +0.12 3.7M 234 59B

RKT Dividend-Like Income Using Covered Calls

With RKT at 21.15, 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% 0.63 0.2
5% 1.06 0.3
10% 2.12 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 RKT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 6 21.50 0.55 10 5.5 0.35 (1.7%)
Mar 6 21.50 1.15 38 3.0 0.35 (1.7%)
5% Yield On RKT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 6 21.50 0.55 10 5.5 0.35 (1.7%)
Mar 6 21.50 1.15 38 3.0 0.35 (1.7%)
10% Yield On RKT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 6 21.50 0.55 10 5.5 0.35 (1.7%)
Mar 6 21.50 1.15 38 3.0 0.35 (1.7%)

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