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 Mon 12:35 PM ET):
| Zoom Video Communications, Inc. - Class A (ZM) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 77.54 |
77.59 |
77.56 |
-1.02 |
1.4M |
24 |
24B |
ZM Dividend-Like Income Using Covered Calls
With ZM at 77.56, 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% |
2.33 |
0.6 |
| 5% |
3.88 |
1.1 |
| 10% |
7.76 |
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 ZM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 1 |
78.00 |
1.95 |
26 |
7.5 |
0.41 (0.5%) |
| Aug 8 |
78.00 |
2.00 |
33 |
6.1 |
0.41 (0.5%) |
| 5% Yield On ZM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 1 |
78.00 |
1.95 |
26 |
7.5 |
0.41 (0.5%) |
| Aug 8 |
78.00 |
2.00 |
33 |
6.1 |
0.41 (0.5%) |
| 10% Yield On ZM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 1 |
78.00 |
1.95 |
26 |
7.5 |
0.41 (0.5%) |
| Aug 8 |
78.00 |
2.00 |
33 |
6.1 |
0.41 (0.5%) |
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