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 Wed 4:16 PM ET):
| Vertiv Holdings, LLC Class A (VRT) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 77.25 |
78.40 |
77.11 |
+1.84 |
7.9M |
59 |
30B |
VRT Dividend-Like Income Using Covered Calls
With VRT at 77.11, 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% |
2.31 |
0.6 |
| 5% |
3.86 |
1.1 |
| 10% |
7.71 |
2.1 |
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 |
| May 2 |
100.00 |
1.07 |
31 |
3.5 |
21.60 (28.0%) |
| Apr 4 |
79.00 |
1.28 |
3 |
42.7 |
0.60 (0.8%) |
| 5% Yield On VRT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 2 |
100.00 |
1.07 |
31 |
3.5 |
21.60 (28.0%) |
| Apr 4 |
79.00 |
1.28 |
3 |
42.7 |
0.60 (0.8%) |
| 10% Yield On VRT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 2 |
100.00 |
1.07 |
31 |
3.5 |
21.60 (28.0%) |
| Apr 4 |
79.00 |
1.28 |
3 |
42.7 |
0.60 (0.8%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
