QS Dividend Type Payments
Although QS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on QuantumScape Corporation Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 1:00 PM ET):
| QuantumScape Corporation Class A (QS) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 4.19 |
4.20 |
4.20 |
-0.12 |
5.1M |
- |
2.4B |
QS Dividend-Like Income Using Covered Calls
With QS at 4.20, 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% |
0.13 |
0.0 |
| 5% |
0.21 |
0.1 |
| 10% |
0.42 |
0.1 |
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 QS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 4 |
4.50 |
0.19 |
23 |
0.8 |
0.30 (7.1%) |
| Apr 11 |
4.50 |
0.22 |
30 |
0.7 |
0.30 (7.1%) |
| 5% Yield On QS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 4 |
4.50 |
0.19 |
23 |
0.8 |
0.30 (7.1%) |
| Apr 11 |
4.50 |
0.22 |
30 |
0.7 |
0.30 (7.1%) |
| 10% Yield On QS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 4 |
4.50 |
0.19 |
23 |
0.8 |
0.30 (7.1%) |
| Apr 11 |
4.50 |
0.22 |
30 |
0.7 |
0.30 (7.1%) |
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