EQR Dividend Type Payments

Equity Residential Common Shares of Beneficial Interest dividend

Although EQR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Equity Residential Common Shares of Beneficial Interest 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):

Equity Residential Common Shares of Beneficial Interest (EQR)
Bid Ask Last Change Volume P/E Market Cap
60.80 62.48 61.58 +0.48 2.2M 20 23B

EQR Dividend-Like Income Using Covered Calls

With EQR at 61.58, 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% 1.85 0.5
5% 3.08 0.8
10% 6.16 1.7

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 EQR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 62.50 0.50 24 2.1 0.02 (0.0%)
Jan 16 62.50 1.10 52 2.1 0.02 (0.0%)
5% Yield On EQR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 62.50 0.50 24 2.1 0.02 (0.0%)
Jan 16 62.50 1.10 52 2.1 0.02 (0.0%)
10% Yield On EQR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 62.50 0.50 24 2.1 0.02 (0.0%)
Jan 16 62.50 1.10 52 2.1 0.02 (0.0%)

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Want more examples? EQNR Dividend | EQT Dividend