RUSHA Dividend

Although RUSHA has a dividend of 0.18 with an ex-dividend date of May 12, 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 Wed 3:20 PM ET):

Rush Enterprises, Inc. - Class A (RUSHA)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
47.70	47.79	47.74	-0.30	199K	-	3.8B

RUSHA Dividend-Like Income Using Covered Calls

With RUSHA at 47.74, 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%	1.43	0.4
5%	2.39	0.7
10%	4.77	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
Oct 17	50.00	1.65	164	1.0	2.21 (4.6%)
Jul 18	50.00	0.55	73	0.8	2.21 (4.6%)

5% Yield On RUSHA Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	50.00	1.65	164	1.0	2.21 (4.6%)
Jul 18	50.00	0.55	73	0.8	2.21 (4.6%)

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