DEA Dividend
Although DEA has a dividend of 0.27 with an ex-dividend date of Mar 5, you can sell covered calls on Easterly Government Properties, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 1:25 PM ET):
| Easterly Government Properties, Inc. (DEA) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 11.31 | 11.32 | 11.31 | +0.12 | 464K | 66 | 1.2B |
DEA Dividend-Like Income Using Covered Calls
With DEA at 11.31, 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% | 0.34 | 0.1 |
| 5% | 0.57 | 0.2 |
| 10% | 1.13 | 0.3 |
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 DEA Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 19 | 12.50 | 0.20 | 205 | 0.1 | 1.18 (10.4%) | |
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| Top 10 Open Interest For Mar 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | KWEB dividend | 1. | SOUN dividend | |
| 2. | SPY dividend | 7. | QQQ dividend | 2. | BBAI dividend | |
| 3. | FXI dividend | 8. | INTC dividend | 3. | QBTS dividend | |
| 4. | IWM dividend | 9. | SLV dividend | 4. | WOLF dividend | |
| 5. | EEM dividend | 10. | TLT dividend | 5. | RKLB dividend | |
Want more examples? DE Dividend | DECK Dividend
