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 Thu 4:16 PM ET):

Radware Ltd. - Ordinary Shares (RDWR)
Bid Ask Last Change Volume P/E Market Cap
28.20 30.82 29.31 -1.25 215K 113 1.4B

RDWR Dividend-Like Income Using Covered Calls

With RDWR at 29.31, 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% 0.88 0.2
5% 1.47 0.4
10% 2.93 0.8

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
Aug 15 32.00 0.45 37 1.2 1.18 (4.0%)
Sep 19 31.00 1.20 72 1.7 0.18 (0.6%)
5% Yield On RDWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 32.00 0.45 37 1.2 1.18 (4.0%)
Sep 19 31.00 1.20 72 1.7 0.18 (0.6%)
10% Yield On RDWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 32.00 0.45 37 1.2 1.18 (4.0%)
Sep 19 31.00 1.20 72 1.7 0.18 (0.6%)

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