ROK Dividend

Although ROK has a dividend of 1.31 with an ex-dividend date of Aug 18, you can sell covered calls on Rockwell Automation, 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):

Rockwell Automation, Inc. (ROK)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
327.51	358.00	344.50	-7.21	1.1M	44	80B

ROK Dividend-Like Income Using Covered Calls

With ROK at 344.50, 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%	10.34	2.8
5%	17.23	4.7
10%	34.45	9.4

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 15	360.00	6.70	15	44.7	2.00 (0.6%)
Oct 17	360.00	11.80	78	15.1	2.00 (0.6%)

5% Yield On ROK Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	360.00	6.70	15	44.7	2.00 (0.6%)
Oct 17	360.00	11.80	78	15.1	2.00 (0.6%)

10% Yield On ROK Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	360.00	6.70	15	44.7	2.00 (0.6%)
Oct 17	360.00	11.80	78	15.1	2.00 (0.6%)

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.	UPST dividend
2.	NVDA dividend	7.	TSLA dividend	2.	PTON dividend
3.	GLD dividend	8.	QQQ dividend	3.	APPS dividend
4.	IWM dividend	9.	AMZN dividend	4.	QBTS dividend
5.	SPY dividend	10.	AAPL dividend	5.	LYFT dividend

Want more examples? ROG Dividend | ROKT Dividend