ROK Dividend Type Payments

ROCKWELL AUTOMATION dividend

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

ROCKWELL AUTOMATION (ROK)
Bid Ask Last Change Volume P/E Market Cap
169.12 173.15 171.69 -0.69 743K 56 21B

ROK Dividend-Like Income Using Covered Calls

With ROK at 171.69, 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% 5.15 1.4
5% 8.58 2.4
10% 17.17 4.7

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 ROK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 175.00 0.05 3 1.7 1.85 (1.1%)
Sep 21 180.00 1.25 38 3.3 6.85 (4.0%)
5% Yield On ROK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 180.00 1.25 38 3.3 6.85 (4.0%)
Oct 19 180.00 2.55 66 3.9 6.85 (4.0%)
10% Yield On ROK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 175.00 2.75 38 7.2 1.85 (1.1%)
Oct 19 175.00 4.60 66 7.0 1.85 (1.1%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.XLF dividend   1.NVDA dividend
2.EEM dividend 7.FB dividend   2.UVXY dividend
3.QQQ dividend 8.FXI dividend   3.JWN dividend
4.SPX dividend 9.GLD dividend   4.GDS dividend
5.BAC dividend 10.AABA dividend   5.AMAT dividend

Want more examples? ROIC Dividend | ROKU Dividend