EMR Dividend Type Payments
Although EMR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Emerson Electric Company to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| Emerson Electric Company (EMR) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 106.71 | 110.35 | 108.64 | -3.44 | 3.1M | 27 | 63B |
EMR Dividend-Like Income Using Covered Calls
With EMR at 108.64, 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% | 3.26 | 0.9 |
| 5% | 5.43 | 1.5 |
| 10% | 10.86 | 3.0 |
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 EMR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 2 | 110.00 | 0.90 | 36 | 1.5 | 0.00 (0.0%) | |
| Apr 4 | 110.00 | 1.00 | 8 | 8.1 | 0.00 (0.0%) | |
| 5% Yield On EMR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 2 | 110.00 | 0.90 | 36 | 1.5 | 0.00 (0.0%) | |
| Apr 4 | 110.00 | 1.00 | 8 | 8.1 | 0.00 (0.0%) | |
| 10% Yield On EMR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 4 | 110.00 | 1.00 | 8 | 8.1 | 0.00 (0.0%) | |
| Apr 11 | 110.00 | 1.60 | 15 | 8.3 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Apr 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | NIO dividend | 1. | EWTX dividend | |
| 2. | SPY dividend | 7. | EEM dividend | 2. | CORZ dividend | |
| 3. | SLV dividend | 8. | TLT dividend | 3. | RCAT dividend | |
| 4. | ASHR dividend | 9. | IWM dividend | 4. | ACHR dividend | |
| 5. | QQQ dividend | 10. | TSLA dividend | 5. | X dividend | |
Want more examples? EMQQ Dividend | EMSG Dividend
