RL Dividend Type Payments
Although RL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Ralph Lauren Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 11:05 AM ET):
| Ralph Lauren Corporation (RL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 354.16 | 354.78 | 354.28 | -3.51 | 126K | 26 | 22B |
RL Dividend-Like Income Using Covered Calls
With RL at 354.28, 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% | 10.63 | 2.9 |
| 5% | 17.71 | 4.9 |
| 10% | 35.43 | 9.7 |
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 RL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 360.00 | 19.10 | 80 | 23.9 | 5.22 (1.5%) | |
| Jul 17 | 360.00 | 30.40 | 171 | 17.8 | 5.22 (1.5%) | |
| 5% Yield On RL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 360.00 | 19.10 | 80 | 23.9 | 5.22 (1.5%) | |
| Jul 17 | 360.00 | 30.40 | 171 | 17.8 | 5.22 (1.5%) | |
| 10% Yield On RL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 360.00 | 19.10 | 80 | 23.9 | 5.22 (1.5%) | |
| Jul 17 | 360.00 | 30.40 | 171 | 17.8 | 5.22 (1.5%) | |
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| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | QQQ dividend | 1. | OCUL dividend | |
| 2. | KWEB dividend | 7. | CORZ dividend | 2. | LQDA dividend | |
| 3. | NVDA dividend | 8. | INTC dividend | 3. | LUNR dividend | |
| 4. | GLD dividend | 9. | SPY dividend | 4. | APLD dividend | |
| 5. | IBIT dividend | 10. | HYG dividend | 5. | RCAT dividend | |
Want more examples? RKT Dividend | RLGT Dividend
