VRSK Dividend Type Payments

Verisk Analytics, Inc dividend

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

Verisk Analytics, Inc (VRSK)
Bid Ask Last Change Volume P/E Market Cap
128.06 129.79 129.79 +0.90 609K 36 21B

VRSK Dividend-Like Income Using Covered Calls

With VRSK at 129.79, 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% 3.89 1.1
5% 6.49 1.8
10% 12.98 3.6

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 VRSK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 135.00 0.30 25 1.2 5.21 (4.0%)
May 17 140.00 0.70 54 1.3 10.21 (7.9%)
5% Yield On VRSK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 130.00 1.85 25 7.4 0.21 (0.2%)
May 17 135.00 1.80 54 3.3 5.21 (4.0%)
10% Yield On VRSK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 130.00 1.85 25 7.4 0.21 (0.2%)
May 17 130.00 3.90 54 7.2 0.21 (0.2%)

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Want more examples? VRS Dividend | VRSN Dividend