VSLR Dividend Type Payments

Although VSLR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on VIVINT SOLAR INC to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 1:15 PM ET):

VIVINT SOLAR INC (VSLR)
Bid Ask Last Change Volume P/E Market Cap
5.20 5.25 5.20 +0.10 110K 3.0 0.6B

VSLR Dividend-Like Income Using Covered Calls

With VSLR at 5.20, 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% 0.16 0.0
5% 0.26 0.1
10% 0.52 0.1

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 VSLR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 6.00 0.05 37 0.1 0.75 (14.4%)
Oct 19 6.00 0.20 65 0.3 0.75 (14.4%)
5% Yield On VSLR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 6.00 0.05 37 0.1 0.75 (14.4%)
Oct 19 6.00 0.20 65 0.3 0.75 (14.4%)
10% Yield On VSLR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 6.00 0.20 65 0.3 0.75 (14.4%)
Jan 18 7.00 0.25 156 0.2 1.75 (33.7%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

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

Want more examples? VSL Dividend | VSM Dividend