VRRM Dividend Type Payments
Although VRRM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Verra Mobility Corporation - Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
Verra Mobility Corporation - Class A (VRRM) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
26.28 | 27.26 | 26.79 | +0.26 | 917K | 47 | 4.4B |
VRRM Dividend-Like Income Using Covered Calls
With VRRM at 26.79, 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% | 0.80 | 0.2 |
5% | 1.34 | 0.4 |
10% | 2.68 | 0.7 |
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 VRRM Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 30.00 | 0.25 | 43 | 0.6 | 2.74 (10.2%) | |
Dec 20 | 30.00 | 0.50 | 78 | 0.6 | 2.74 (10.2%) |
5% Yield On VRRM Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 30.00 | 0.25 | 43 | 0.6 | 2.74 (10.2%) | |
Dec 20 | 30.00 | 0.50 | 78 | 0.6 | 2.74 (10.2%) |
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Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | EEM dividend | 1. | CLOV dividend | |
2. | IWM dividend | 7. | SLV dividend | 2. | AEHR dividend | |
3. | SPY dividend | 8. | SMCI dividend | 3. | APLD dividend | |
4. | FXI dividend | 9. | KWEB dividend | 4. | CPRI dividend | |
5. | QQQ dividend | 10. | HYG dividend | 5. | WOLF dividend |
Want more examples? VRP Dividend | VRSK Dividend