ESI Dividend Type Payments
Although ESI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Element Solutions Inc. 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):
| Element Solutions Inc. (ESI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 22.80 | 25.26 | 24.16 | -0.29 | 3.2M | 25 | 5.9B |
ESI Dividend-Like Income Using Covered Calls
With ESI at 24.16, 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% | 0.72 | 0.2 |
| 5% | 1.21 | 0.3 |
| 10% | 2.42 | 0.7 |
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 ESI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 18 | 30.00 | 1.00 | 395 | 0.3 | 4.74 (19.6%) | |
| Feb 20 | 30.00 | 0.25 | 94 | 0.3 | 4.74 (19.6%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SPY dividend | 1. | ESTC dividend | |
| 2. | IBIT dividend | 7. | QQQ dividend | 2. | SGML dividend | |
| 3. | KVUE dividend | 8. | SLV dividend | 3. | RZLT dividend | |
| 4. | TSLA dividend | 9. | TLT dividend | 4. | VTYX dividend | |
| 5. | NFLX dividend | 10. | INTC dividend | 5. | OLMA dividend | |
Want more examples? ESGU Dividend | ESK Dividend
