RBC Dividend Type Payments

Although RBC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on RBC Bearings Incorporated to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 10:35 AM ET):

RBC Bearings Incorporated (RBC)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
425.92	428.61	427.26	+3.88	16K	52	13B

RBC Dividend-Like Income Using Covered Calls

With RBC at 427.26, 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%	12.82	3.5
5%	21.36	5.9
10%	42.73	11.7

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 RBC Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	430.00	10.50	31	33.9	1.39 (0.3%)
Nov 21	430.00	1.50	3	50.0	1.39 (0.3%)

5% Yield On RBC Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	430.00	10.50	31	33.9	1.39 (0.3%)
Nov 21	430.00	1.50	3	50.0	1.39 (0.3%)

10% Yield On RBC Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	430.00	10.50	31	33.9	1.39 (0.3%)
Nov 21	430.00	1.50	3	50.0	1.39 (0.3%)

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Want more examples? RBBN Dividend | RBCAA Dividend