RUT Dividend Type Payments

Although RUT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on RUSSELL 2000 to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:00 PM ET):

RUSSELL 2000 (RUT)
Bid Ask Last Change Volume P/E Market Cap
1,670.68 1,670.68 1,670.68 -21.90 0K - 0.0B

RUT Dividend-Like Income Using Covered Calls

With RUT at 1,670.68, 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% 0.03 0.0
5% 0.05 0.0
10% 0.10 0.0

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 RUT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 1690.00 0.60 3 20.0 19.32 (1.2%)
Aug 24 1710.00 1.40 10 14.0 39.32 (2.4%)
5% Yield On RUT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 1685.00 1.10 3 36.7 14.32 (0.9%)
Aug 24 1700.00 2.90 10 29.0 29.32 (1.8%)
10% Yield On RUT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 1680.00 2.25 3 75.0 9.32 (0.6%)
Aug 24 1690.00 5.50 10 55.0 19.32 (1.2%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.XLF dividend   1.UVXY dividend
2.EEM dividend 7.FB dividend   2.JWN dividend
3.QQQ dividend 8.FXI dividend   3.NVDA dividend
4.SPX dividend 9.GLD dividend   4.GDS dividend
5.BAC dividend 10.AABA dividend   5.TUR dividend

Want more examples? RUSS Dividend | RUTH Dividend