DECK Dividend Type Payments
Although DECK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Deckers Outdoor Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 10:05 AM ET):
| Deckers Outdoor Corporation (DECK) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 140.00 | 140.25 | 140.11 | -4.86 | 459K | 15 | 22B |
DECK Dividend-Like Income Using Covered Calls
With DECK at 140.11, 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% | 4.20 | 1.2 |
| 5% | 7.01 | 1.9 |
| 10% | 14.01 | 3.8 |
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 DECK Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 4 | 140.00 | 7.20 | 37 | 18.8 | 0.00 (0.0%) | |
| Mar 7 | 140.00 | 4.00 | 9 | 41.7 | 0.00 (0.0%) | |
| 5% Yield On DECK Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 4 | 140.00 | 7.20 | 37 | 18.8 | 0.00 (0.0%) | |
| Mar 7 | 140.00 | 4.00 | 9 | 41.7 | 0.00 (0.0%) | |
| 10% Yield On DECK Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 4 | 140.00 | 7.20 | 37 | 18.8 | 0.00 (0.0%) | |
| Mar 7 | 140.00 | 4.00 | 9 | 41.7 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Mar 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | KWEB dividend | 1. | BBAI dividend | |
| 2. | SPY dividend | 7. | QQQ dividend | 2. | SOUN dividend | |
| 3. | FXI dividend | 8. | INTC dividend | 3. | RKLB dividend | |
| 4. | IWM dividend | 9. | SLV dividend | 4. | QBTS dividend | |
| 5. | EEM dividend | 10. | TLT dividend | 5. | CLOV dividend | |
Want more examples? DEA Dividend | DEED Dividend
