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 |
| 88.50 |
90.05 |
89.82 |
+0.44 |
2.7M |
17 |
28B |
ZM Dividend-Like Income Using Covered Calls
With ZM at 89.82, 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% |
2.69 |
0.7 |
| 5% |
4.49 |
1.2 |
| 10% |
8.98 |
2.5 |
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 |
| Dec 26 |
90.00 |
0.88 |
8 |
10.4 |
0.00 (0.0%) |
| Jan 2 |
90.00 |
1.39 |
15 |
8.9 |
0.00 (0.0%) |
| 5% Yield On ZM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 26 |
90.00 |
0.88 |
8 |
10.4 |
0.00 (0.0%) |
| Jan 2 |
90.00 |
1.39 |
15 |
8.9 |
0.00 (0.0%) |
| 10% Yield On ZM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 26 |
90.00 |
0.88 |
8 |
10.4 |
0.00 (0.0%) |
| Jan 2 |
90.00 |
1.39 |
15 |
8.9 |
0.00 (0.0%) |
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