RUSHA Dividend

Although RUSHA has a dividend of 0.17 with an ex-dividend date of May 8, you can sell covered calls on Rush Enterprises, Inc. - Class A 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):

Rush Enterprises, Inc. - Class A (RUSHA)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
44.58	48.27	46.76	+1.35	353K	-	3.5B

RUSHA Dividend-Like Income Using Covered Calls

With RUSHA at 46.76, 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%	1.40	0.4
5%	2.34	0.6
10%	4.68	1.3

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 RUSHA Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jun 21	50.00	0.25	57	0.4	1.73 (3.7%)
Jul 19	50.00	0.55	85	0.6	1.73 (3.7%)

5% Yield On RUSHA Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jul 19	50.00	0.55	85	0.6	1.73 (3.7%)
Oct 18	50.00	1.50	176	0.9	1.73 (3.7%)

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