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 Tue 4:16 PM ET):
| Zoom Video Communications, Inc. - Class A (ZM) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 86.50 |
87.54 |
87.16 |
-2.83 |
2.1M |
18 |
28B |
ZM Dividend-Like Income Using Covered Calls
With ZM at 87.16, 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% |
2.61 |
0.7 |
| 5% |
4.36 |
1.2 |
| 10% |
8.72 |
2.4 |
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 |
| Dec 26 |
88.00 |
0.26 |
4 |
6.5 |
0.46 (0.5%) |
| Jan 2 |
88.00 |
0.80 |
11 |
7.3 |
0.46 (0.5%) |
| 5% Yield On ZM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 26 |
88.00 |
0.26 |
4 |
6.5 |
0.46 (0.5%) |
| Jan 2 |
88.00 |
0.80 |
11 |
7.3 |
0.46 (0.5%) |
| 10% Yield On ZM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 26 |
88.00 |
0.26 |
4 |
6.5 |
0.46 (0.5%) |
| Jan 2 |
88.00 |
0.80 |
11 |
7.3 |
0.46 (0.5%) |
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