VRT Dividend
Although VRT has a dividend of 0.06 with an ex-dividend date of Nov 25, 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 |
| 170.40 |
172.73 |
170.97 |
+7.33 |
10.0M |
62 |
64B |
VRT Dividend-Like Income Using Covered Calls
With VRT at 170.97, 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% |
5.13 |
1.4 |
| 5% |
8.55 |
2.3 |
| 10% |
17.10 |
4.7 |
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 VRT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
175.00 |
8.55 |
22 |
38.9 |
2.27 (1.3%) |
| Dec 12 |
175.00 |
10.00 |
29 |
34.5 |
2.27 (1.3%) |
| 5% Yield On VRT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
175.00 |
8.55 |
22 |
38.9 |
2.27 (1.3%) |
| Dec 12 |
175.00 |
10.00 |
29 |
34.5 |
2.27 (1.3%) |
| 10% Yield On VRT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
175.00 |
8.55 |
22 |
38.9 |
2.27 (1.3%) |
| Dec 12 |
175.00 |
10.00 |
29 |
34.5 |
2.27 (1.3%) |
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