QS Dividend Type Payments
Although QS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on QuantumScape Corporation Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 12:35 PM ET):
| QuantumScape Corporation Class A (QS) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 13.94 |
13.95 |
13.95 |
+0.38 |
16.6M |
- |
8.2B |
QS Dividend-Like Income Using Covered Calls
With QS at 13.95, 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% |
0.42 |
0.1 |
| 5% |
0.70 |
0.2 |
| 10% |
1.40 |
0.4 |
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 QS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
14.00 |
1.32 |
22 |
6.0 |
0.05 (0.4%) |
| Dec 12 |
14.00 |
1.52 |
29 |
5.2 |
0.05 (0.4%) |
| 5% Yield On QS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
14.00 |
1.32 |
22 |
6.0 |
0.05 (0.4%) |
| Dec 12 |
14.00 |
1.52 |
29 |
5.2 |
0.05 (0.4%) |
| 10% Yield On QS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
14.00 |
1.32 |
22 |
6.0 |
0.05 (0.4%) |
| Dec 12 |
14.00 |
1.52 |
29 |
5.2 |
0.05 (0.4%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
