ED Dividend Type Payments

Consolidated Edison, Inc. dividend

Although ED has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Consolidated Edison, Inc. 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):

Consolidated Edison, Inc. (ED)
Bid Ask Last Change Volume P/E Market Cap
100.65 103.10 101.89 +1.03 1.4M 18 36B

ED Dividend-Like Income Using Covered Calls

With ED at 101.89, 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% 3.06 0.8
5% 5.09 1.4
10% 10.19 2.8

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 ED Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 105.00 0.05 4 1.3 1.90 (1.9%)
Nov 21 105.00 1.30 39 3.3 1.90 (1.9%)
5% Yield On ED Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 21 105.00 1.30 39 3.3 1.90 (1.9%)
May 15 105.00 4.20 214 2.0 1.90 (1.9%)
10% Yield On ED Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 21 105.00 1.30 39 3.3 1.90 (1.9%)

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