ROKU Dividend Type Payments
Although ROKU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Roku, Inc. - Class A 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):
| Roku, Inc. - Class A (ROKU) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 91.51 |
91.80 |
91.69 |
-1.60 |
3.8M |
- |
14B |
ROKU Dividend-Like Income Using Covered Calls
With ROKU at 91.69, 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% |
2.75 |
0.8 |
| 5% |
4.58 |
1.3 |
| 10% |
9.17 |
2.5 |
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 ROKU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 1 |
100.00 |
2.45 |
12 |
20.4 |
8.20 (8.9%) |
| Aug 8 |
100.00 |
2.73 |
19 |
14.4 |
8.20 (8.9%) |
| 5% Yield On ROKU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 1 |
100.00 |
2.45 |
12 |
20.4 |
8.20 (8.9%) |
| Aug 8 |
100.00 |
2.73 |
19 |
14.4 |
8.20 (8.9%) |
| 10% Yield On ROKU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 1 |
100.00 |
2.45 |
12 |
20.4 |
8.20 (8.9%) |
| Aug 8 |
100.00 |
2.73 |
19 |
14.4 |
8.20 (8.9%) |
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