ERIE Dividend

Although ERIE has a dividend of 1.37 with an ex-dividend date of Jul 8, you can sell covered calls on Erie Indemnity Company - Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

Erie Indemnity Company - Class A (ERIE)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
345.67	362.50	357.47	+4.27	117K	34	16B

ERIE Dividend-Like Income Using Covered Calls

With ERIE at 357.47, 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%	10.72	2.9
5%	17.87	4.9
10%	35.75	9.8

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 ERIE Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 19	370.00	21.80	131	16.6	7.50 (2.1%)
Dec 19	370.00	30.40	222	13.7	7.50 (2.1%)

5% Yield On ERIE Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 19	370.00	21.80	131	16.6	7.50 (2.1%)
Dec 19	370.00	30.40	222	13.7	7.50 (2.1%)

10% Yield On ERIE Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 19	370.00	21.80	131	16.6	7.50 (2.1%)
Dec 19	370.00	30.40	222	13.7	7.50 (2.1%)

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Want more examples? ERIC Dividend | ERII Dividend