VC Dividend Type Payments

VISTEON CORP COMMON dividend

Although VC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on VISTEON CORP COMMON to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 11:00 AM ET):

VISTEON CORP COMMON (VC)
Bid Ask Last Change Volume P/E Market Cap
77.51 77.63 77.57 +2.68 321K 14 2.2B

VC Dividend-Like Income Using Covered Calls

With VC at 77.57, 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% 2.33 0.6
5% 3.88 1.1
10% 7.76 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 VC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 90.00 0.40 29 1.4 12.37 (15.9%)
Dec 21 95.00 0.45 64 0.7 17.37 (22.4%)
5% Yield On VC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 90.00 0.40 29 1.4 12.37 (15.9%)
Dec 21 90.00 1.00 64 1.6 12.37 (15.9%)
10% Yield On VC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 85.00 1.15 29 4.0 7.37 (9.5%)
Dec 21 85.00 2.00 64 3.1 7.37 (9.5%)

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Want more examples? VBR Dividend | VCEL Dividend