EL Dividend Type Payments

Although EL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Estee Lauder Companies, Inc. (The) to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

Estee Lauder Companies, Inc. (The) (EL)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
53.35	55.15	54.47	+1.81	6.1M	-	19B

EL Dividend-Like Income Using Covered Calls

With EL at 54.47, 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%	1.63	0.4
5%	2.72	0.7
10%	5.45	1.5

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 EL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 2	55.00	3.30	16	19.7	0.00 (0.0%)
May 9	55.00	3.70	23	15.4	0.00 (0.0%)

5% Yield On EL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 2	55.00	3.30	16	19.7	0.00 (0.0%)
May 9	55.00	3.70	23	15.4	0.00 (0.0%)

10% Yield On EL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 2	55.00	3.30	16	19.7	0.00 (0.0%)
May 9	55.00	3.70	23	15.4	0.00 (0.0%)

Want to increase dividends with covered calls? Sign Up For A Free Trial

Top 10 Open Interest For May 16 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	IWM dividend	1.	STLA dividend
2.	SPY dividend	7.	GLD dividend	2.	UPST dividend
3.	TLT dividend	8.	FXI dividend	3.	NBIS dividend
4.	SLV dividend	9.	TSLA dividend	4.	HOOD dividend
5.	QQQ dividend	10.	INTC dividend	5.	RIOT dividend

Want more examples? EKSO Dividend | ELAN Dividend