RCL Dividend Type Payments
Although RCL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on D/B/A Royal Caribbean Cruises Ltd. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| D/B/A Royal Caribbean Cruises Ltd. (RCL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 175.28 | 177.36 | 177.36 | -0.18 | 2.4M | 19 | 46B |
RCL Dividend-Like Income Using Covered Calls
With RCL at 177.36, 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% | 5.32 | 1.5 |
| 5% | 8.87 | 2.4 |
| 10% | 17.74 | 4.9 |
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 RCL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 1 | 180.00 | 7.60 | 33 | 23.0 | 2.64 (1.5%) | |
| Oct 4 | 177.50 | 2.74 | 5 | 54.8 | 0.14 (0.1%) | |
| 5% Yield On RCL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 1 | 180.00 | 7.60 | 33 | 23.0 | 2.64 (1.5%) | |
| Oct 4 | 177.50 | 2.74 | 5 | 54.8 | 0.14 (0.1%) | |
| 10% Yield On RCL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 1 | 180.00 | 7.60 | 33 | 23.0 | 2.64 (1.5%) | |
| Oct 4 | 177.50 | 2.74 | 5 | 54.8 | 0.14 (0.1%) | |
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| Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | QQQ dividend | 1. | APLD dividend | |
| 2. | IWM dividend | 7. | SLV dividend | 2. | SAVA dividend | |
| 3. | FXI dividend | 8. | HYG dividend | 3. | ASTS dividend | |
| 4. | SPY dividend | 9. | TLT dividend | 4. | MBLY dividend | |
| 5. | EEM dividend | 10. | TSLA dividend | 5. | CORZ dividend | |
Want more examples? RCKT Dividend | RCM Dividend
