RNR Dividend

Renaissancere Holdings dividend

Although RNR has a dividend of 0.34 with an ex-dividend date of Mar 14, you can sell covered calls on Renaissancere Holdings to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 10:45 AM ET):

Renaissancere Holdings (RNR)
Bid Ask Last Change Volume P/E Market Cap
144.85 144.99 144.85 -0.14 17K 30 6.1B

RNR Dividend-Like Income Using Covered Calls

With RNR at 144.85, 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% 4.35 1.2
5% 7.24 2.0
10% 14.49 4.0

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 RNR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 150.00 0.70 22 3.2 5.01 (3.5%)
Apr 18 155.00 1.00 56 1.8 10.01 (6.9%)
5% Yield On RNR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 150.00 0.70 22 3.2 5.01 (3.5%)
Apr 18 150.00 2.15 56 3.8 5.01 (3.5%)
10% Yield On RNR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 145.00 2.35 22 10.7 0.01 (0.0%)
Apr 18 145.00 4.20 56 7.5 0.01 (0.0%)

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Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
1.SPX dividend 6.EWZ dividend   1.CRON dividend
2.EEM dividend 7.GE dividend   2.AMRN dividend
3.SPY dividend 8.LLY dividend   3.PCG dividend
4.QQQ dividend 9.BAC dividend   4.ROKU dividend
5.FXI dividend 10.GLD dividend   5.FIT dividend

Want more examples? RNN Dividend | RNST Dividend