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 |
| 180.75 |
181.60 |
180.51 |
+5.36 |
5.6M |
84 |
69B |
VRT Dividend-Like Income Using Covered Calls
With VRT at 180.51, 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% |
5.42 |
1.5 |
| 5% |
9.03 |
2.5 |
| 10% |
18.05 |
4.9 |
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 7 |
185.00 |
12.30 |
24 |
51.3 |
3.40 (1.9%) |
| Nov 14 |
185.00 |
12.95 |
31 |
41.8 |
3.40 (1.9%) |
| 5% Yield On VRT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 7 |
185.00 |
12.30 |
24 |
51.3 |
3.40 (1.9%) |
| Nov 14 |
185.00 |
12.95 |
31 |
41.8 |
3.40 (1.9%) |
| 10% Yield On VRT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 7 |
185.00 |
12.30 |
24 |
51.3 |
3.40 (1.9%) |
| Nov 14 |
185.00 |
12.95 |
31 |
41.8 |
3.40 (1.9%) |
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