VRT Dividend Type Payments
Although VRT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vertiv Holdings, LLC 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):
Vertiv Holdings, LLC Class A (VRT) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
105.02 |
105.50 |
105.20 |
+2.51 |
5.7M |
80 |
40B |
VRT Dividend-Like Income Using Covered Calls
With VRT at 105.20, 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% |
3.16 |
0.9 |
5% |
5.26 |
1.4 |
10% |
10.52 |
2.9 |
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 VRT Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 1 |
105.00 |
8.00 |
29 |
25.9 |
0.00 (0.0%) |
Nov 8 |
105.00 |
7.50 |
36 |
19.4 |
0.00 (0.0%) |
5% Yield On VRT Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 1 |
105.00 |
8.00 |
29 |
25.9 |
0.00 (0.0%) |
Nov 8 |
105.00 |
7.50 |
36 |
19.4 |
0.00 (0.0%) |
10% Yield On VRT Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 1 |
105.00 |
8.00 |
29 |
25.9 |
0.00 (0.0%) |
Nov 8 |
105.00 |
7.50 |
36 |
19.4 |
0.00 (0.0%) |
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