RS Dividend

Although RS has a dividend of 1.20 with an ex-dividend date of Aug 15, you can sell covered calls on Reliance, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

Reliance, Inc. (RS)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
267.32	301.52	286.51	+3.38	366K	21	15B

RS Dividend-Like Income Using Covered Calls

With RS at 286.51, 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%	8.60	2.4
5%	14.33	3.9
10%	28.65	7.8

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 RS Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	310.00	6.20	130	4.8	8.48 (3.0%)
Nov 21	310.00	6.30	102	6.2	8.48 (3.0%)

5% Yield On RS Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	310.00	6.20	130	4.8	8.48 (3.0%)
Nov 21	310.00	6.30	102	6.2	8.48 (3.0%)

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Want more examples? RRR Dividend | RSG Dividend