RCMT Dividend Type Payments
Although RCMT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on RCM Technologies, Inc. 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):
RCM Technologies, Inc. (RCMT) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
20.11 | 20.84 | 20.28 | -0.09 | 37K | 10 | 0.2B |
RCMT Dividend-Like Income Using Covered Calls
With RCMT at 20.28, 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% | 0.61 | 0.2 |
5% | 1.01 | 0.3 |
10% | 2.03 | 0.6 |
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 RCMT Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Dec 20 | 22.50 | 0.55 | 82 | 0.7 | 1.66 (8.2%) |
5% Yield On RCMT Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Dec 20 | 22.50 | 0.55 | 82 | 0.7 | 1.66 (8.2%) |
10% Yield On RCMT Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Dec 20 | 22.50 | 0.55 | 82 | 0.7 | 1.66 (8.2%) |
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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? RCM Dividend | RCUS Dividend