DOX Dividend
Although DOX has a dividend of 0.53 with an ex-dividend date of Mar 31, you can sell covered calls on Amdocs Limited - Ordinary Shares 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):
Amdocs Limited - Ordinary Shares (DOX) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
87.68 | 93.00 | 87.99 | +1.37 | 563K | 20 | 11B |
DOX Dividend-Like Income Using Covered Calls
With DOX at 87.99, 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% | 2.64 | 0.7 |
5% | 4.40 | 1.2 |
10% | 8.80 | 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 DOX Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Oct 17 | 95.00 | 2.55 | 218 | 1.2 | 2.00 (2.3%) | |
Jul 18 | 95.00 | 1.35 | 127 | 1.1 | 2.00 (2.3%) |
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Top 10 Open Interest For Mar 21 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | EEM dividend | 1. | QBTS dividend | |
2. | SPY dividend | 7. | KWEB dividend | 2. | ZIM dividend | |
3. | IWM dividend | 8. | TSLA dividend | 3. | RGTI dividend | |
4. | FXI dividend | 9. | INTC dividend | 4. | SLNO dividend | |
5. | QQQ dividend | 10. | TLT dividend | 5. | SOUN dividend |
Want more examples? DOW Dividend | DPST Dividend