VAC Dividend Type Payments

Although VAC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Marriott Vacations Worldwide Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

Marriott Vacations Worldwide Corporation (VAC)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
91.00	115.00	101.03	-2.14	229K	16	3.6B

VAC Dividend-Like Income Using Covered Calls

With VAC at 101.03, 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%	3.03	0.8
5%	5.05	1.4
10%	10.10	2.8

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 VAC Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 17	115.00	0.40	23	1.7	0.00 (0.0%)
Jun 21	115.00	1.20	58	2.1	0.00 (0.0%)

5% Yield On VAC Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 17	115.00	0.40	23	1.7	0.00 (0.0%)
Jun 21	115.00	1.20	58	2.1	0.00 (0.0%)

10% Yield On VAC Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	115.00	6.70	240	2.8	0.00 (0.0%)

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Want more examples? V Dividend | VAL Dividend