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 Thu 1:40 PM ET):

RUSSELL 2000 (RUT)
Bid Ask Last Change Volume P/E Market Cap
1,557.96 1,557.96 1,557.96 -31.64 0K - 0.0B

RUT Dividend-Like Income Using Covered Calls

With RUT at 1,557.96, 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
Oct 26 1625.00 1.45 9 16.1 67.04 (4.3%)
Nov 2 1640.00 2.30 16 14.4 82.04 (5.3%)
5% Yield On RUT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 1615.00 2.35 9 26.1 57.04 (3.7%)
Nov 2 1625.00 4.00 16 25.0 67.04 (4.3%)
10% Yield On RUT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 1600.00 4.80 9 53.3 42.04 (2.7%)
Nov 2 1605.00 7.90 16 49.4 47.04 (3.0%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.PBR dividend   1.CLVS dividend
2.SPX dividend 7.MU dividend   2.LLNW dividend
3.QQQ dividend 8.IWM dividend   3.CLF dividend
4.EEM dividend 9.FXI dividend   4.UVXY dividend
5.BAC dividend 10.AMD dividend   5.ARQL dividend

Want more examples? RUSS Dividend | RUTH Dividend