RDWR Dividend Type Payments

Radware Ltd. - Ordinary Shares dividend

Although RDWR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Radware Ltd. - Ordinary Shares 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):

Radware Ltd. - Ordinary Shares (RDWR)
Bid Ask Last Change Volume P/E Market Cap
21.78 24.24 22.28 +0.49 250K - 1.0B

RDWR Dividend-Like Income Using Covered Calls

With RDWR at 22.28, 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% 0.67 0.2
5% 1.11 0.3
10% 2.23 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 RDWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 15 25.00 0.30 47 0.6 0.76 (3.4%)
Dec 20 26.00 0.35 82 0.4 1.76 (7.9%)
5% Yield On RDWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 15 25.00 0.30 47 0.6 0.76 (3.4%)
Dec 20 26.00 0.35 82 0.4 1.76 (7.9%)
10% Yield On RDWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 15 25.00 0.30 47 0.6 0.76 (3.4%)
Mar 21 25.00 1.20 173 0.7 0.76 (3.4%)

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