ZM Dividend Type Payments
Although ZM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Zoom Video Communications, Inc. - 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):
Zoom Video Communications, Inc. - Class A (ZM) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
69.02 |
71.40 |
70.68 |
-0.17 |
2.9M |
25 |
22B |
ZM Dividend-Like Income Using Covered Calls
With ZM at 70.68, 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% |
2.12 |
0.6 |
5% |
3.53 |
1.0 |
10% |
7.07 |
1.9 |
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 ZM Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 1 |
72.00 |
1.32 |
22 |
6.0 |
0.60 (0.8%) |
Nov 8 |
72.00 |
1.57 |
29 |
5.4 |
0.60 (0.8%) |
5% Yield On ZM Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 1 |
72.00 |
1.32 |
22 |
6.0 |
0.60 (0.8%) |
Nov 8 |
72.00 |
1.57 |
29 |
5.4 |
0.60 (0.8%) |
10% Yield On ZM Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 1 |
72.00 |
1.32 |
22 |
6.0 |
0.60 (0.8%) |
Nov 8 |
72.00 |
1.57 |
29 |
5.4 |
0.60 (0.8%) |
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