RY Dividend

Royal Bank Of Canada dividend

Although RY has a dividend of 1.02 with an ex-dividend date of Apr 24, you can sell covered calls on Royal Bank Of Canada to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

Royal Bank Of Canada (RY)
Bid Ask Last Change Volume P/E Market Cap
76.38 78.44 77.43 -0.48 618K 12 112B

RY Dividend-Like Income Using Covered Calls

With RY at 77.43, 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% 2.32 0.6
5% 3.87 1.1
10% 7.74 2.1

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 RY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 80.00 0.20 30 0.7 1.56 (2.0%)
May 17 80.00 0.40 59 0.7 1.56 (2.0%)

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Top 10 Open Interest For Apr 18 Expiration     Top 5 High Yield
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