DD Dividend

DuPont de Nemours, Inc. dividend

Although DD has a dividend of 0.41 with an ex-dividend date of May 30, you can sell covered calls on DuPont de Nemours, 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):

DuPont de Nemours, Inc. (DD)
Bid Ask Last Change Volume P/E Market Cap
66.21 67.00 66.77 +0.52 1.7M - 28B

DD Dividend-Like Income Using Covered Calls

With DD at 66.77, 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% 2.00 0.5
5% 3.34 0.9
10% 6.68 1.8

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 DD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 6 67.00 1.70 29 5.9 0.00 (0.0%)
Jun 13 67.00 1.75 36 4.9 0.00 (0.0%)
5% Yield On DD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 6 67.00 1.70 29 5.9 0.00 (0.0%)
Jun 13 67.00 1.75 36 4.9 0.00 (0.0%)
10% Yield On DD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 6 67.00 1.70 29 5.9 0.00 (0.0%)
Jun 13 67.00 1.75 36 4.9 0.00 (0.0%)

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