RL Dividend

Although RL has a dividend of 0.91 with an ex-dividend date of Sep 26, 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 4:16 PM ET):

Ralph Lauren Corporation (RL)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
300.50	319.48	312.01	+1.36	637K	25	19B

RL Dividend-Like Income Using Covered Calls

With RL at 312.01, 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%	9.36	2.6
5%	15.60	4.3
10%	31.20	8.5

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 RL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	320.00	6.30	24	26.3	0.52 (0.2%)
Nov 21	320.00	15.10	59	25.6	0.52 (0.2%)

5% Yield On RL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	320.00	6.30	24	26.3	0.52 (0.2%)
Nov 21	320.00	15.10	59	25.6	0.52 (0.2%)

10% Yield On RL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	320.00	6.30	24	26.3	0.52 (0.2%)
Nov 21	320.00	15.10	59	25.6	0.52 (0.2%)

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Top 10 Open Interest For Oct 17 Expiration				Top 5 High Yield
1.	SLV dividend	6.	IWM dividend	1.	ARCT dividend
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Want more examples? RKT Dividend | RLGT Dividend