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 Fri 4:16 PM ET):
| D/B/A Royal Caribbean Cruises Ltd. (RCL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 272.48 | 274.00 | 272.39 | +4.61 | 3.3M | 22 | 73B |
RCL Dividend-Like Income Using Covered Calls
With RCL at 272.39, 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% | 8.17 | 2.2 |
| 5% | 13.62 | 3.7 |
| 10% | 27.24 | 7.5 |
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 | |
| Jul 3 | 275.00 | 5.95 | 14 | 42.5 | 1.00 (0.4%) | |
| Jul 11 | 275.00 | 7.75 | 22 | 35.2 | 1.00 (0.4%) | |
| 5% Yield On RCL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jul 3 | 275.00 | 5.95 | 14 | 42.5 | 1.00 (0.4%) | |
| Jul 11 | 275.00 | 7.75 | 22 | 35.2 | 1.00 (0.4%) | |
| 10% Yield On RCL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jul 3 | 275.00 | 5.95 | 14 | 42.5 | 1.00 (0.4%) | |
| Jul 11 | 275.00 | 7.75 | 22 | 35.2 | 1.00 (0.4%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | TSLA dividend | 1. | ALT dividend | |
| 2. | NVDA dividend | 7. | IWM dividend | 2. | COGT dividend | |
| 3. | SPY dividend | 8. | FXI dividend | 3. | BBAI dividend | |
| 4. | GLD dividend | 9. | AAPL dividend | 4. | RUN dividend | |
| 5. | TLT dividend | 10. | CLSK dividend | 5. | CELC dividend | |
Want more examples? RCKT Dividend | RCUS Dividend
