ESCA Dividend
Although ESCA has a dividend of 0.15 with an ex-dividend date of Jan 5, you can sell covered calls on Escalade, Incorporated to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 11:50 AM ET):
| Escalade, Incorporated (ESCA) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 12.59 | 12.77 | 12.68 | +0.29 | 4K | 14 | 0.2B |
ESCA Dividend-Like Income Using Covered Calls
With ESCA at 12.68, 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% | 0.38 | 0.1 |
| 5% | 0.63 | 0.2 |
| 10% | 1.27 | 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:
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | NFLX dividend | 1. | ESTC dividend | |
| 2. | IBIT dividend | 7. | QQQ dividend | 2. | PHAT dividend | |
| 3. | KVUE dividend | 8. | SLV dividend | 3. | IMNM dividend | |
| 4. | TSLA dividend | 9. | TLT dividend | 4. | RZLT dividend | |
| 5. | SPY dividend | 10. | INTC dividend | 5. | VTYX dividend | |
Want more examples? ESBA Dividend | ESE Dividend
