XYL Dividend

XYLEM dividend

Although XYL has a dividend of 0.21 with an ex-dividend date of Oct 31, you can sell covered calls on XYLEM to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 11:20 AM ET):

XYLEM (XYL)
Bid Ask Last Change Volume P/E Market Cap
70.98 71.03 71.01 -0.74 308K 35 13B

XYL Dividend-Like Income Using Covered Calls

With XYL at 71.01, 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% 2.13 0.6
5% 3.55 1.0
10% 7.10 1.9

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 XYL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 75.00 0.75 31 2.4 3.97 (5.6%)
Jan 18 80.00 0.65 94 0.7 8.97 (12.6%)
5% Yield On XYL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 75.00 0.75 31 2.4 3.97 (5.6%)
Jan 18 75.00 1.75 94 1.9 3.97 (5.6%)
10% Yield On XYL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 75.00 0.75 31 2.4 3.97 (5.6%)

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.CLVS dividend
3.QQQ dividend 8.FXI dividend   3.CRON dividend
4.EEM dividend 9.IWM dividend   4.UVXY dividend
5.BAC dividend 10.AMD dividend   5.GBT dividend

Want more examples? XXII Dividend | Y Dividend