ROK Dividend
Although ROK has a dividend of 1.31 with an ex-dividend date of Aug 18, you can sell covered calls on Rockwell Automation, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:20 PM ET):
| Rockwell Automation, Inc. (ROK) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 353.28 | 353.93 | 353.93 | +3.22 | 354K | 44 | 79B |
ROK Dividend-Like Income Using Covered Calls
With ROK at 353.93, 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% | 10.62 | 2.9 |
| 5% | 17.70 | 4.8 |
| 10% | 35.39 | 9.7 |
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 ROK Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 360.00 | 10.50 | 25 | 42.0 | 6.07 (1.7%) | |
| Oct 17 | 360.00 | 16.50 | 88 | 18.8 | 6.07 (1.7%) | |
| 5% Yield On ROK Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 360.00 | 10.50 | 25 | 42.0 | 6.07 (1.7%) | |
| Oct 17 | 360.00 | 16.50 | 88 | 18.8 | 6.07 (1.7%) | |
| 10% Yield On ROK Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 360.00 | 10.50 | 25 | 42.0 | 6.07 (1.7%) | |
| Oct 17 | 360.00 | 16.50 | 88 | 18.8 | 6.07 (1.7%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Aug 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | IBIT dividend | 1. | MBX dividend | |
| 2. | NVDA dividend | 7. | TSLA dividend | 2. | EOSE dividend | |
| 3. | GLD dividend | 8. | AMZN dividend | 3. | CHTR dividend | |
| 4. | IWM dividend | 9. | AAPL dividend | 4. | CELC dividend | |
| 5. | SPY dividend | 10. | QQQ dividend | 5. | TDOC dividend | |
Want more examples? ROG Dividend | ROKT Dividend
