RLI Dividend Type Payments

RLI Corp. (DE) dividend

Although RLI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on RLI Corp. (DE) to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 10:15 AM ET):

RLI Corp. (DE) (RLI)
Bid Ask Last Change Volume P/E Market Cap
65.01 65.06 65.00 +0.14 41K 19 6.0B

RLI Dividend-Like Income Using Covered Calls

With RLI at 65.00, 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% 1.95 0.5
5% 3.25 0.9
10% 6.50 1.8

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 RLI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 65.00 1.00 86 1.1 0.00 (0.0%)
Nov 21 65.00 0.60 58 0.9 0.00 (0.0%)
5% Yield On RLI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 65.00 1.00 86 1.1 0.00 (0.0%)
Nov 21 65.00 0.60 58 0.9 0.00 (0.0%)

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

 
 
Top 10 Open Interest For Oct 17 Expiration     Top 5 High Yield
1.NVDA dividend 6.IWM dividend   1.AIV dividend
2.SLV dividend 7.SPY dividend   2.RGTI dividend
3.GLD dividend 8.FXI dividend   3.ARCT dividend
4.IBIT dividend 9.PCG dividend   4.QBTS dividend
5.EEM dividend 10.HYG dividend   5.OPEN dividend

Want more examples? RLGT Dividend | RLJ Dividend