VSM Dividend Type Payments

Although VSM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Versum Materials, Inc 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):

Versum Materials, Inc (VSM)
Bid Ask Last Change Volume P/E Market Cap
33.37 40.61 39.50 +0.22 538K 18 4.3B

VSM Dividend-Like Income Using Covered Calls

With VSM at 39.50, 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% 1.19 0.3
5% 1.98 0.5
10% 3.95 1.1

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 VSM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 42.50 0.40 57 0.7 1.89 (4.8%)
Jun 21 45.00 0.50 121 0.4 4.39 (11.1%)
5% Yield On VSM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 42.50 0.40 57 0.7 1.89 (4.8%)
Jun 21 42.50 1.15 121 1.0 1.89 (4.8%)

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

 
Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
1.SPX dividend 6.EWZ dividend   1.Z dividend
2.EEM dividend 7.GE dividend   2.FSLR dividend
3.SPY dividend 8.LLY dividend   3.ROKU dividend
4.QQQ dividend 9.BAC dividend   4.IQ dividend
5.FXI dividend 10.GLD dividend   5.DBX dividend

Want more examples? VSLR Dividend | VSS Dividend