RBCAA Dividend
Although RBCAA has a dividend of 0.45 with an ex-dividend date of Mar 21, you can sell covered calls on Republic Bancorp, Inc. - 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 1:35 PM ET):
| Republic Bancorp, Inc. - Class A (RBCAA) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 66.27 | 66.73 | 66.39 | -0.04 | 7K | 13 | 1.3B |
RBCAA Dividend-Like Income Using Covered Calls
With RBCAA at 66.39, 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% | 1.99 | 0.5 |
| 5% | 3.32 | 0.9 |
| 10% | 6.64 | 1.8 |
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 RBCAA Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 70.00 | 1.50 | 192 | 0.8 | 3.27 (4.9%) | |
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| Top 10 Open Interest For Feb 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | SYM dividend | |
| 2. | TLT dividend | 7. | QQQ dividend | 2. | BILL dividend | |
| 3. | SPY dividend | 8. | SLV dividend | 3. | AFRM dividend | |
| 4. | IWM dividend | 9. | GLD dividend | 4. | NET dividend | |
| 5. | FXI dividend | 10. | KWEB dividend | 5. | PINS dividend | |
Want more examples? RBC Dividend | RC Dividend
