VMW Dividend Type Payments

VMWARE dividend

Although VMW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on VMWARE 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):

VMWARE (VMW)
Bid Ask Last Change Volume P/E Market Cap
150.93 153.64 151.93 -0.11 1.6M 48 62B

VMW Dividend-Like Income Using Covered Calls

With VMW at 151.93, 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% 4.56 1.2
5% 7.60 2.1
10% 15.19 4.2

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 VMW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 165.00 0.15 9 1.7 11.36 (7.5%)
Aug 31 167.50 0.35 16 2.2 13.86 (9.1%)
5% Yield On VMW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 162.50 0.50 9 5.6 8.86 (5.8%)
Aug 31 167.50 0.35 16 2.2 13.86 (9.1%)
10% Yield On VMW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 162.50 0.50 9 5.6 8.86 (5.8%)
Aug 31 162.50 0.90 16 5.6 8.86 (5.8%)

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

Want more examples? VMIN Dividend | VNDA Dividend