DE Dividend Type Payments

Deere & Company dividend

Although DE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Deere & Company to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 1:35 PM ET):

Deere & Company (DE)
Bid Ask Last Change Volume P/E Market Cap
431.34 432.20 431.86 -0.45 594K 17 117B

DE Dividend-Like Income Using Covered Calls

With DE at 431.86, 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% 12.96 3.5
5% 21.59 5.9
10% 43.19 11.8

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 DE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 7 435.00 7.80 24 32.5 2.80 (0.6%)
Feb 14 435.00 9.00 31 29.0 2.80 (0.6%)
5% Yield On DE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 7 435.00 7.80 24 32.5 2.80 (0.6%)
Feb 14 435.00 9.00 31 29.0 2.80 (0.6%)
10% Yield On DE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 7 435.00 7.80 24 32.5 2.80 (0.6%)
Feb 14 435.00 9.00 31 29.0 2.80 (0.6%)

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