RCL Dividend

Although RCL has a dividend of 0.55 with an ex-dividend date of Dec 27, you can sell covered calls on D/B/A Royal Caribbean Cruises Ltd. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

D/B/A Royal Caribbean Cruises Ltd. (RCL)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
236.00	239.23	237.76	-2.54	973K	25	65B

RCL Dividend-Like Income Using Covered Calls

With RCL at 237.76, 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%	7.13	2.0
5%	11.89	3.3
10%	23.78	6.5

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 RCL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 3	240.00	2.34	9	26.0	0.77 (0.3%)
Jan 10	240.00	4.50	16	28.1	0.77 (0.3%)

5% Yield On RCL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 3	240.00	2.34	9	26.0	0.77 (0.3%)
Jan 10	240.00	4.50	16	28.1	0.77 (0.3%)

10% Yield On RCL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 3	240.00	2.34	9	26.0	0.77 (0.3%)
Jan 10	240.00	4.50	16	28.1	0.77 (0.3%)

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