CLOV Dividend Type Payments
Although CLOV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Clover Health Investments, Corp. - Class A Common stock to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 1:55 PM ET):
| Clover Health Investments, Corp. - Class A Common stock (CLOV) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 2.61 |
2.62 |
2.62 |
-0.04 |
2.4M |
- |
1.4B |
CLOV Dividend-Like Income Using Covered Calls
With CLOV at 2.62, 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% |
0.08 |
0.0 |
| 5% |
0.13 |
0.0 |
| 10% |
0.26 |
0.1 |
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 CLOV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 12 |
3.00 |
0.01 |
8 |
0.1 |
0.38 (14.5%) |
| Dec 19 |
3.00 |
0.04 |
15 |
0.3 |
0.38 (14.5%) |
| 5% Yield On CLOV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 12 |
3.00 |
0.01 |
8 |
0.1 |
0.38 (14.5%) |
| Dec 19 |
3.00 |
0.04 |
15 |
0.3 |
0.38 (14.5%) |
| 10% Yield On CLOV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 12 |
3.00 |
0.01 |
8 |
0.1 |
0.38 (14.5%) |
| Dec 19 |
3.00 |
0.04 |
15 |
0.3 |
0.38 (14.5%) |
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