ORI Dividend
Although ORI has a dividend of 2.50 with an ex-dividend date of Jan 2, you can sell covered calls on Old Republic International Corporation 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):
| Old Republic International Corporation (ORI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 45.00 | 46.66 | 45.30 | +0.83 | 1.5M | 13 | 11B |
ORI Dividend-Like Income Using Covered Calls
With ORI at 45.30, 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% | 1.36 | 0.4 |
| 5% | 2.27 | 0.6 |
| 10% | 4.53 | 1.2 |
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 ORI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jul 17 | 50.00 | 1.05 | 218 | 0.5 | 3.34 (7.4%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Dec 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | NKTR dividend | |
| 2. | SPY dividend | 7. | TLT dividend | 2. | AVXL dividend | |
| 3. | IBIT dividend | 8. | SLV dividend | 3. | CTMX dividend | |
| 4. | IWM dividend | 9. | NFLX dividend | 4. | BE dividend | |
| 5. | QQQ dividend | 10. | TSLA dividend | 5. | OMER dividend | |
Want more examples? ORGO Dividend | ORLY Dividend
