ZM Dividend Type Payments
Although ZM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Zoom Video Communications, Inc. - Class A 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):
Zoom Video Communications, Inc. - Class A (ZM) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
62.45 |
62.99 |
62.83 |
+1.22 |
2.6M |
30 |
19B |
ZM Dividend-Like Income Using Covered Calls
With ZM at 62.83, 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% |
1.88 |
0.5 |
5% |
3.14 |
0.9 |
10% |
6.28 |
1.7 |
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 ZM Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Jun 7 |
63.00 |
3.45 |
37 |
9.3 |
0.01 (0.0%) |
May 10 |
63.00 |
1.00 |
9 |
11.1 |
0.01 (0.0%) |
5% Yield On ZM Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Jun 7 |
63.00 |
3.45 |
37 |
9.3 |
0.01 (0.0%) |
May 10 |
63.00 |
1.00 |
9 |
11.1 |
0.01 (0.0%) |
10% Yield On ZM Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Jun 7 |
63.00 |
3.45 |
37 |
9.3 |
0.01 (0.0%) |
May 10 |
63.00 |
1.00 |
9 |
11.1 |
0.01 (0.0%) |
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