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 Thu 11:20 AM ET):
Garmin Ltd. (GRMN) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
190.29 | 190.72 | 190.58 | +2.32 | 284K | 25 | 36B |
GRMN Dividend-Like Income Using Covered Calls
With GRMN at 190.58, 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% | 5.72 | 1.6 |
5% | 9.53 | 2.6 |
10% | 19.06 | 5.2 |
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 | |
May 16 | 190.00 | 3.90 | 9 | 35.3 | 0.00 (0.0%) | |
Oct 17 | 190.00 | 16.90 | 163 | 9.9 | 0.00 (0.0%) |
5% Yield On GRMN Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 16 | 190.00 | 3.90 | 9 | 35.3 | 0.00 (0.0%) | |
Oct 17 | 190.00 | 16.90 | 163 | 9.9 | 0.00 (0.0%) |
10% Yield On GRMN Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 16 | 190.00 | 3.90 | 9 | 35.3 | 0.00 (0.0%) | |
Oct 17 | 190.00 | 16.90 | 163 | 9.9 | 0.00 (0.0%) |
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Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | IWM dividend | 1. | PINS dividend | |
2. | SPY dividend | 7. | TSLA dividend | 2. | LYFT dividend | |
3. | TLT dividend | 8. | FXI dividend | 3. | RKLB dividend | |
4. | QQQ dividend | 9. | GLD dividend | 4. | PTON dividend | |
5. | SLV dividend | 10. | INTC dividend | 5. | CVI dividend |
Want more examples? GRFS Dividend | GRN Dividend