COLD Dividend
Although COLD has a dividend of 0.22 with an ex-dividend date of Sep 30, you can sell covered calls on Americold Realty Trust, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
Americold Realty Trust, Inc. (COLD) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
27.00 | 29.97 | 28.39 | -0.24 | 2.7M | - | 8.1B |
COLD Dividend-Like Income Using Covered Calls
With COLD at 28.39, 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% | 0.85 | 0.2 |
5% | 1.42 | 0.4 |
10% | 2.84 | 0.8 |
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 COLD Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Oct 18 | 30.00 | 0.10 | 29 | 0.3 | 0.03 (0.1%) | |
Jan 17 | 30.00 | 0.35 | 120 | 0.3 | 0.03 (0.1%) |
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Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | SLV dividend | 1. | RLAY dividend | |
2. | IWM dividend | 7. | GLD dividend | 2. | LUNR dividend | |
3. | SPY dividend | 8. | TLT dividend | 3. | MARA dividend | |
4. | QQQ dividend | 9. | EEM dividend | 4. | CPRI dividend | |
5. | HYG dividend | 10. | AAPL dividend | 5. | MBLY dividend |
Want more examples? COLB Dividend | COLL Dividend