VRT Dividend Type Payments
Although VRT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vertiv Holdings, LLC Class A 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):
| Vertiv Holdings, LLC Class A (VRT) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 93.51 |
94.70 |
94.80 |
+1.31 |
10.1M |
79 |
37B |
VRT Dividend-Like Income Using Covered Calls
With VRT at 94.80, 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% |
2.84 |
0.8 |
| 5% |
4.74 |
1.3 |
| 10% |
9.48 |
2.6 |
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 VRT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 3 |
100.00 |
0.95 |
5 |
19.0 |
5.30 (5.6%) |
| Jun 7 |
100.00 |
4.40 |
40 |
11.0 |
5.30 (5.6%) |
| 5% Yield On VRT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 3 |
100.00 |
0.95 |
5 |
19.0 |
5.30 (5.6%) |
| Jun 7 |
100.00 |
4.40 |
40 |
11.0 |
5.30 (5.6%) |
| 10% Yield On VRT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 3 |
100.00 |
0.95 |
5 |
19.0 |
5.30 (5.6%) |
| Jun 7 |
100.00 |
4.40 |
40 |
11.0 |
5.30 (5.6%) |
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