DGII Dividend Type Payments
Although DGII has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Digi International Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| Digi International Inc. (DGII) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 24.85 | 42.55 | 29.40 | +0.96 | 251K | 30 | 1.0B |
DGII Dividend-Like Income Using Covered Calls
With DGII at 29.40, 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% | 0.88 | 0.2 |
| 5% | 1.47 | 0.4 |
| 10% | 2.94 | 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:
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| Top 10 Open Interest For Mar 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | QQQ dividend | 1. | S dividend | |
| 2. | SPY dividend | 7. | KWEB dividend | 2. | PATH dividend | |
| 3. | IWM dividend | 8. | INTC dividend | 3. | GRPN dividend | |
| 4. | FXI dividend | 9. | TSLA dividend | 4. | RCAT dividend | |
| 5. | EEM dividend | 10. | SLV dividend | 5. | LUNR dividend | |
Want more examples? DGICA Dividend | DGP Dividend
