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 Thu 1:10 PM ET):
| Verra Mobility Corporation - Class A (VRRM) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 24.36 |
24.38 |
24.37 |
+0.12 |
237K |
93 |
3.9B |
VRRM Dividend-Like Income Using Covered Calls
With VRRM at 24.37, 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% |
0.73 |
0.2 |
| 5% |
1.22 |
0.3 |
| 10% |
2.44 |
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 |
| Dec 19 |
25.00 |
1.40 |
65 |
2.2 |
0.62 (2.5%) |
| Nov 21 |
25.00 |
1.15 |
37 |
3.1 |
0.62 (2.5%) |
| 5% Yield On VRRM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
25.00 |
1.40 |
65 |
2.2 |
0.62 (2.5%) |
| Nov 21 |
25.00 |
1.15 |
37 |
3.1 |
0.62 (2.5%) |
| 10% Yield On VRRM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
25.00 |
1.40 |
65 |
2.2 |
0.62 (2.5%) |
| Nov 21 |
25.00 |
1.15 |
37 |
3.1 |
0.62 (2.5%) |
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