RRC Dividend

Range Resources Corp dividend

Although RRC has a dividend of 0.02 with an ex-dividend date of Dec 13, you can sell covered calls on Range Resources Corp 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):

Range Resources Corp (RRC)
Bid Ask Last Change Volume P/E Market Cap
13.01 13.08 13.05 -0.19 6.4M - 0.0B

RRC Dividend-Like Income Using Covered Calls

With RRC at 13.05, 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% 0.39 0.1
5% 0.65 0.2
10% 1.31 0.4

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 RRC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 14 13.50 0.05 3 1.7 0.42 (3.2%)
Dec 21 15.00 0.05 10 0.5 1.92 (14.7%)
5% Yield On RRC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 14 13.50 0.05 3 1.7 0.42 (3.2%)
Dec 21 15.00 0.05 10 0.5 1.92 (14.7%)
10% Yield On RRC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 14 13.50 0.05 3 1.7 0.42 (3.2%)
Dec 21 15.00 0.05 10 0.5 1.92 (14.7%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
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5.EWZ dividend 10.BAC dividend   5. dividend

Want more examples? RPV Dividend | RRD Dividend