RLV Dividend Type Payments

Although RLV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on AMEX RUSSELL 1000 VALUE to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 2:10 PM ET):

AMEX RUSSELL 1000 VALUE (RLV)
Bid Ask Last Change Volume P/E Market Cap
1,215.86 1,215.86 1,215.86 +5.13 0K - 0.0B

RLV Dividend-Like Income Using Covered Calls

With RLV at 1,215.86, here's a table showing how big the annual "dividend" (ie. 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% 0.03 0.0
5% 0.05 0.0
10% 0.10 0.0

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 RLV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 1240.00 3.50 31 11.3 24.14 (2.0%)
Dec 21 1250.00 8.00 66 12.1 34.14 (2.8%)
5% Yield On RLV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 1230.00 7.50 31 24.2 14.14 (1.2%)
Dec 21 1240.00 12.50 66 18.9 24.14 (2.0%)
10% Yield On RLV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 1220.00 13.00 31 41.9 4.14 (0.3%)
Dec 21 1220.00 23.00 66 34.8 4.14 (0.3%)

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

 
Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.PBR dividend   1.LLNW dividend
2.SPX dividend 7.MU dividend   2.CLVS dividend
3.QQQ dividend 8.FXI dividend   3.ERIC dividend
4.EEM dividend 9.IWM dividend   4.CRON dividend
5.BAC dividend 10.AMD dividend   5.UVXY dividend

Want more examples? RLJ Dividend | RLY Dividend