RNR Dividend Type Payments
Although RNR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on RenaissanceRe Holdings Ltd. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 12:55 PM ET):
| RenaissanceRe Holdings Ltd. (RNR) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 245.18 | 245.41 | 245.30 | +1.65 | 110K | 7.7 | 23B |
RNR Dividend-Like Income Using Covered Calls
With RNR at 245.30, 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% | 7.36 | 2.0 |
| 5% | 12.27 | 3.4 |
| 10% | 24.53 | 6.7 |
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 | |
| Aug 15 | 250.00 | 9.60 | 59 | 16.3 | 4.59 (1.9%) | |
| Oct 17 | 250.00 | 14.80 | 122 | 12.1 | 4.59 (1.9%) | |
| 5% Yield On RNR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 250.00 | 9.60 | 59 | 16.3 | 4.59 (1.9%) | |
| Oct 17 | 250.00 | 14.80 | 122 | 12.1 | 4.59 (1.9%) | |
| 10% Yield On RNR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 250.00 | 9.60 | 59 | 16.3 | 4.59 (1.9%) | |
| Oct 17 | 250.00 | 14.80 | 122 | 12.1 | 4.59 (1.9%) | |
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| Top 10 Open Interest For Jun 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | COGT dividend | |
| 2. | SPY dividend | 7. | GLD dividend | 2. | CAPR dividend | |
| 3. | QQQ dividend | 8. | TLT dividend | 3. | ALT dividend | |
| 4. | TSLA dividend | 9. | AAPL dividend | 4. | RUN dividend | |
| 5. | SLV dividend | 10. | INTC dividend | 5. | CELC dividend | |
Want more examples? RNG Dividend | RNST Dividend
