GRMN Dividend
Although GRMN has a dividend of 0.90 with an ex-dividend date of Jun 16, you can sell covered calls on Garmin Ltd. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| Garmin Ltd. (GRMN) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 190.78 | 206.00 | 202.97 | +0.13 | 2.0M | 27 | 39B |
GRMN Dividend-Like Income Using Covered Calls
With GRMN at 202.97, 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% | 6.09 | 1.7 |
| 5% | 10.15 | 2.8 |
| 10% | 20.30 | 5.6 |
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 GRMN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 210.00 | 10.90 | 141 | 7.7 | 4.00 (2.0%) | |
| Jul 18 | 210.00 | 4.20 | 50 | 8.4 | 4.00 (2.0%) | |
| 5% Yield On GRMN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 210.00 | 10.90 | 141 | 7.7 | 4.00 (2.0%) | |
| Jul 18 | 210.00 | 4.20 | 50 | 8.4 | 4.00 (2.0%) | |
| 10% Yield On GRMN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 210.00 | 10.90 | 141 | 7.7 | 4.00 (2.0%) | |
| Jul 18 | 210.00 | 4.20 | 50 | 8.4 | 4.00 (2.0%) | |
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| Top 10 Open Interest For Jun 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | ALT dividend | |
| 2. | SPY dividend | 7. | EEM dividend | 2. | IONQ dividend | |
| 3. | SLV dividend | 8. | FXI dividend | 3. | BBAI dividend | |
| 4. | QQQ dividend | 9. | TSLA dividend | 4. | RGTI dividend | |
| 5. | GLD dividend | 10. | TLT dividend | 5. | LVWR dividend | |
Want more examples? GRFS Dividend | GRN Dividend
