VEON Dividend Type Payments
Although VEON has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on VEON Ltd. - American Depositary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| VEON Ltd. - American Depositary Shares (VEON) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 55.95 |
59.88 |
56.73 |
-2.52 |
204K |
228 |
3.9B |
VEON Dividend-Like Income Using Covered Calls
With VEON at 56.73, 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% |
1.70 |
0.5 |
| 5% |
2.84 |
0.8 |
| 10% |
5.67 |
1.6 |
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 VEON Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
60.00 |
0.10 |
3 |
3.3 |
0.12 (0.2%) |
| Sep 19 |
60.00 |
0.35 |
38 |
0.9 |
0.12 (0.2%) |
| 5% Yield On VEON Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
60.00 |
0.10 |
3 |
3.3 |
0.12 (0.2%) |
| Sep 19 |
60.00 |
0.35 |
38 |
0.9 |
0.12 (0.2%) |
| 10% Yield On VEON Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
60.00 |
0.10 |
3 |
3.3 |
0.12 (0.2%) |
| Dec 19 |
60.00 |
3.50 |
129 |
2.7 |
0.12 (0.2%) |
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