DE Dividend Type Payments

Deere & Company dividend

Although DE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Deere & Company 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):

Deere & Company (DE)
Bid Ask Last Change Volume P/E Market Cap
470.00 487.00 475.30 -6.04 802K 21 131B

DE Dividend-Like Income Using Covered Calls

With DE at 475.30, 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% 14.26 3.9
5% 23.77 6.5
10% 47.53 13.0

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 DE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 6 485.00 14.35 32 38.6 0.00 (0.0%)
May 9 487.50 1.18 4 29.5 0.50 (0.1%)
5% Yield On DE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 6 485.00 14.35 32 38.6 0.00 (0.0%)
May 9 487.50 1.18 4 29.5 0.50 (0.1%)
10% Yield On DE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 6 485.00 14.35 32 38.6 0.00 (0.0%)
May 9 487.50 1.18 4 29.5 0.50 (0.1%)

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