RBA Dividend

RB Global Inc. dividend

Although RBA has a dividend of 0.29 with an ex-dividend date of Nov 27, you can sell covered calls on RB Global Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

RB Global Inc. (RBA)
Bid Ask Last Change Volume P/E Market Cap
92.54 94.26 93.60 -0.53 953K 51 17B

RBA Dividend-Like Income Using Covered Calls

With RBA at 93.60, 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% 2.81 0.8
5% 4.68 1.3
10% 9.36 2.6

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 RBA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 100.00 0.45 32 1.4 5.74 (6.1%)
Jan 17 100.00 1.20 60 2.0 5.74 (6.1%)
5% Yield On RBA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 100.00 0.45 32 1.4 5.74 (6.1%)
Jan 17 100.00 1.20 60 2.0 5.74 (6.1%)
10% Yield On RBA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 95.00 1.85 32 5.8 0.74 (0.8%)
Jan 17 95.00 2.25 60 3.8 0.74 (0.8%)

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