ITRN Dividend Type Payments
Although ITRN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Ituran Location and Control Ltd. - 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 1:45 PM ET):
| Ituran Location and Control Ltd. - Ordinary Shares (ITRN) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 37.60 |
37.83 |
37.67 |
+0.11 |
32K |
14 |
0.9B |
ITRN Dividend-Like Income Using Covered Calls
With ITRN at 37.67, 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% |
1.13 |
0.3 |
| 5% |
1.88 |
0.5 |
| 10% |
3.77 |
1.0 |
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 ITRN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
40.00 |
0.95 |
93 |
1.0 |
2.17 (5.8%) |
| Jun 20 |
40.00 |
0.45 |
37 |
1.2 |
2.17 (5.8%) |
| 5% Yield On ITRN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
40.00 |
0.95 |
93 |
1.0 |
2.17 (5.8%) |
| Jun 20 |
40.00 |
0.45 |
37 |
1.2 |
2.17 (5.8%) |
| 10% Yield On ITRN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 20 |
40.00 |
0.45 |
37 |
1.2 |
2.17 (5.8%) |
| Nov 21 |
40.00 |
2.05 |
191 |
1.1 |
2.17 (5.8%) |
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