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 Wed 4:16 PM ET):
| Zoom Video Communications, Inc. - Class A (ZM) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 82.50 |
83.00 |
82.76 |
-0.43 |
2.2M |
16 |
26B |
ZM Dividend-Like Income Using Covered Calls
With ZM at 82.76, 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% |
2.48 |
0.7 |
| 5% |
4.14 |
1.1 |
| 10% |
8.28 |
2.3 |
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 |
| Feb 6 |
83.00 |
2.41 |
24 |
10.0 |
0.00 (0.0%) |
| Feb 13 |
83.00 |
2.36 |
31 |
7.6 |
0.00 (0.0%) |
| 5% Yield On ZM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 6 |
83.00 |
2.41 |
24 |
10.0 |
0.00 (0.0%) |
| Feb 13 |
83.00 |
2.36 |
31 |
7.6 |
0.00 (0.0%) |
| 10% Yield On ZM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 6 |
83.00 |
2.41 |
24 |
10.0 |
0.00 (0.0%) |
| Feb 13 |
83.00 |
2.36 |
31 |
7.6 |
0.00 (0.0%) |
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