VST Dividend Type Payments

Although VST has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on VISTRA ENERGY CORP 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):

VISTRA ENERGY CORP (VST)
Bid Ask Last Change Volume P/E Market Cap
11.71 26.00 22.86 -0.53 5.3M - 12B

VST Dividend-Like Income Using Covered Calls

With VST at 22.86, 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% 0.69 0.2
5% 1.14 0.3
10% 2.29 0.6

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 VST Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 27.00 0.20 93 0.2 1.00 (4.4%)

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

 
Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.PBR dividend   1.LLNW dividend
2.SPX dividend 7.MU dividend   2.CLF dividend
3.QQQ dividend 8.IWM dividend   3.PYPL dividend
4.EEM dividend 9.FXI dividend   4.SKX dividend
5.BAC dividend 10.AMD dividend   5.UVXY dividend

Want more examples? VSS Dividend | VSTM Dividend