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 Wed 2:30 PM ET):
| QuantumScape Corporation Class A (QS) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 5.48 |
5.49 |
5.49 |
+0.18 |
27.7M |
- |
2.7B |
QS Dividend-Like Income Using Covered Calls
With QS at 5.49, 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% |
0.16 |
0.0 |
| 5% |
0.27 |
0.1 |
| 10% |
0.55 |
0.2 |
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 |
| Dec 20 |
5.50 |
0.12 |
3 |
4.0 |
0.01 (0.2%) |
| Dec 27 |
10.00 |
0.03 |
10 |
0.3 |
4.51 (82.1%) |
| 5% Yield On QS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
5.50 |
0.12 |
3 |
4.0 |
0.01 (0.2%) |
| Dec 27 |
10.00 |
0.03 |
10 |
0.3 |
4.51 (82.1%) |
| 10% Yield On QS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
5.50 |
0.12 |
3 |
4.0 |
0.01 (0.2%) |
| Dec 27 |
10.00 |
0.03 |
10 |
0.3 |
4.51 (82.1%) |
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