DCOM Dividend
Although DCOM has a dividend of 0.25 with an ex-dividend date of Jan 17, you can sell covered calls on Dime Community Bancshares, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| Dime Community Bancshares, Inc. (DCOM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 18.00 | 34.00 | 29.90 | +0.31 | 293K | 20 | 1.2B |
DCOM Dividend-Like Income Using Covered Calls
With DCOM at 29.90, 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% | 0.90 | 0.2 |
| 5% | 1.50 | 0.4 |
| 10% | 2.99 | 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 DCOM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jun 20 | 35.00 | 0.50 | 159 | 0.3 | 1.00 (3.3%) | |
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| Top 10 Open Interest For Jan 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | INTC dividend | 1. | AEHR dividend | |
| 2. | SLV dividend | 7. | TSLA dividend | 2. | EVH dividend | |
| 3. | AAPL dividend | 8. | XLF dividend | 3. | RUM dividend | |
| 4. | SPY dividend | 9. | IWM dividend | 4. | SWTX dividend | |
| 5. | EEM dividend | 10. | TLT dividend | 5. | RCAT dividend | |
Want more examples? DCO Dividend | DCTH Dividend
