ERIC Dividend Type Payments

Ericsson - American Depositary Shares each representing 1 underlying Cla dividend

Although ERIC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Ericsson - American Depositary Shares each representing 1 underlying Cla 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):

Ericsson - American Depositary Shares each representing 1 underlying Cla (ERIC)
Bid Ask Last Change Volume P/E Market Cap
9.45 9.61 9.55 +0.05 7.9M 12 15B

ERIC Dividend-Like Income Using Covered Calls

With ERIC at 9.55, 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% 0.29 0.1
5% 0.48 0.1
10% 0.96 0.3

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 ERIC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 10.00 0.05 24 0.2 0.39 (4.1%)
Jan 16 10.00 0.20 52 0.4 0.39 (4.1%)
5% Yield On ERIC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 10.00 0.05 24 0.2 0.39 (4.1%)
Jan 16 10.00 0.20 52 0.4 0.39 (4.1%)
10% Yield On ERIC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 16 10.00 0.20 52 0.4 0.39 (4.1%)
Apr 17 10.00 0.65 143 0.5 0.39 (4.1%)

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