VALE Dividend Type Payments
Although VALE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on VALE S.A. American Depositary Shares Each Representing one common share 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):
| VALE S.A. American Depositary Shares Each Representing one common share (VALE) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 9.91 | 9.94 | 9.94 | -0.28 | 35.6M | 8.0 | 33B |
VALE Dividend-Like Income Using Covered Calls
With VALE at 9.94, 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% | 0.30 | 0.1 |
| 5% | 0.50 | 0.1 |
| 10% | 0.99 | 0.3 |
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 VALE Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 1 | 10.00 | 0.26 | 26 | 1.0 | 0.06 (0.6%) | |
| Aug 8 | 10.00 | 0.30 | 33 | 0.9 | 0.06 (0.6%) | |
| 5% Yield On VALE Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 1 | 10.00 | 0.26 | 26 | 1.0 | 0.06 (0.6%) | |
| Aug 8 | 10.00 | 0.30 | 33 | 0.9 | 0.06 (0.6%) | |
| 10% Yield On VALE Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 1 | 10.00 | 0.26 | 26 | 1.0 | 0.06 (0.6%) | |
| Aug 8 | 10.00 | 0.30 | 33 | 0.9 | 0.06 (0.6%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | CIFR dividend | |
| 2. | SLV dividend | 7. | AAPL dividend | 2. | TMC dividend | |
| 3. | SPY dividend | 8. | TLT dividend | 3. | CELC dividend | |
| 4. | TSLA dividend | 9. | IBIT dividend | 4. | REPL dividend | |
| 5. | IWM dividend | 10. | QQQ dividend | 5. | ALT dividend | |
Want more examples? VAL Dividend | VALQ Dividend
