CWEN Dividend Type Payments
Although CWEN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Clearway Energy, Inc. Class C to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| Clearway Energy, Inc. Class C (CWEN) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 28.99 | 31.00 | 29.23 | +0.32 | 592K | - | 5.8B |
CWEN Dividend-Like Income Using Covered Calls
With CWEN at 29.23, 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% | 0.88 | 0.2 |
| 5% | 1.46 | 0.4 |
| 10% | 2.92 | 0.8 |
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 CWEN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 35.00 | 0.30 | 121 | 0.2 | 4.00 (13.7%) | |
| Nov 21 | 35.00 | 0.80 | 219 | 0.4 | 4.00 (13.7%) | |
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | STLA dividend | |
| 2. | SPY dividend | 7. | GLD dividend | 2. | UPST dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | NBIS dividend | |
| 4. | SLV dividend | 9. | TSLA dividend | 4. | HOOD dividend | |
| 5. | QQQ dividend | 10. | INTC dividend | 5. | RIOT dividend | |
Want more examples? CWEB Dividend | CWH Dividend
