RDY Dividend Type Payments
Although RDY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Dr. Reddy's Laboratories Ltd to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:10 PM ET):
| Dr. Reddy's Laboratories Ltd (RDY) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 13.97 | 13.98 | 13.97 | +0.02 | 458K | 18 | 12B |
RDY Dividend-Like Income Using Covered Calls
With RDY at 13.97, 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% | 0.42 | 0.1 |
| 5% | 0.70 | 0.2 |
| 10% | 1.40 | 0.4 |
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:
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SPY dividend | 1. | OLMA dividend | |
| 2. | IBIT dividend | 7. | SLV dividend | 2. | IMNM dividend | |
| 3. | KVUE dividend | 8. | QQQ dividend | 3. | SHLS dividend | |
| 4. | NFLX dividend | 9. | TLT dividend | 4. | RZLT dividend | |
| 5. | TSLA dividend | 10. | HYG dividend | 5. | AGIO dividend | |
Want more examples? RDWR Dividend | REAL Dividend
