RMD Dividend Type Payments

ResMed Inc. dividend

Although RMD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ResMed Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

ResMed Inc. (RMD)
Bid Ask Last Change Volume P/E Market Cap
246.47 263.00 257.92 +1.50 871K 29 38B

RMD Dividend-Like Income Using Covered Calls

With RMD at 257.92, 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% 7.74 2.1
5% 12.90 3.5
10% 25.79 7.1

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 RMD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 270.00 5.40 29 18.6 7.00 (2.7%)
Oct 17 270.00 9.40 92 10.2 7.00 (2.7%)
5% Yield On RMD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 270.00 5.40 29 18.6 7.00 (2.7%)
Oct 17 270.00 9.40 92 10.2 7.00 (2.7%)
10% Yield On RMD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 270.00 5.40 29 18.6 7.00 (2.7%)
Oct 17 270.00 9.40 92 10.2 7.00 (2.7%)

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

 
 
Top 10 Open Interest For Aug 15 Expiration     Top 5 High Yield
1.SLV dividend 6.IBIT dividend   1.CELC dividend
2.NVDA dividend 7.TSLA dividend   2.CRML dividend
3.GLD dividend 8.AMZN dividend   3.NFE dividend
4.IWM dividend 9.AAPL dividend   4.ARES dividend
5.SPY dividend 10.SMCI dividend   5.MBX dividend

Want more examples? RMBS Dividend | RMNI Dividend