ETN Dividend Type Payments
Although ETN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Eaton Corporation, PLC Ordinary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 11:25 AM ET):
| Eaton Corporation, PLC Ordinary Shares (ETN) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 377.05 | 377.45 | 377.15 | -4.57 | 483K | 38 | 149B |
ETN Dividend-Like Income Using Covered Calls
With ETN at 377.15, 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% | 11.31 | 3.1 |
| 5% | 18.86 | 5.2 |
| 10% | 37.72 | 10.3 |
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 ETN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 7 | 380.00 | 14.20 | 23 | 61.7 | 2.55 (0.7%) | |
| Nov 14 | 380.00 | 15.90 | 30 | 53.0 | 2.55 (0.7%) | |
| 5% Yield On ETN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 7 | 380.00 | 14.20 | 23 | 61.7 | 2.55 (0.7%) | |
| Nov 14 | 380.00 | 15.90 | 30 | 53.0 | 2.55 (0.7%) | |
| 10% Yield On ETN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 7 | 380.00 | 14.20 | 23 | 61.7 | 2.55 (0.7%) | |
| Nov 14 | 380.00 | 15.90 | 30 | 53.0 | 2.55 (0.7%) | |
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| Top 10 Open Interest For Oct 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | INTC dividend | 1. | SNDX dividend | |
| 2. | IBIT dividend | 7. | QQQ dividend | 2. | VERI dividend | |
| 3. | SPY dividend | 8. | AMZN dividend | 3. | PPTA dividend | |
| 4. | GLD dividend | 9. | AMD dividend | 4. | KOD dividend | |
| 5. | TSLA dividend | 10. | SLV dividend | 5. | ABCL dividend | |
Want more examples? ETHO Dividend | ETNB Dividend
