RCL Dividend Type Payments
Although RCL has no upcoming (meaning, Board-approved and announced) dividends, 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 Fri 4:16 PM ET):
| D/B/A Royal Caribbean Cruises Ltd. (RCL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 208.52 | 215.00 | 212.02 | +4.12 | 2.4M | 19 | 56B |
RCL Dividend-Like Income Using Covered Calls
With RCL at 212.02, 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% | 6.36 | 1.7 |
| 5% | 10.60 | 2.9 |
| 10% | 21.20 | 5.8 |
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 RCL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 4 | 215.00 | 8.05 | 22 | 36.6 | 0.00 (0.0%) | |
| Apr 11 | 215.00 | 9.00 | 29 | 31.0 | 0.00 (0.0%) | |
| 5% Yield On RCL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 4 | 215.00 | 8.05 | 22 | 36.6 | 0.00 (0.0%) | |
| Apr 11 | 215.00 | 9.00 | 29 | 31.0 | 0.00 (0.0%) | |
| 10% Yield On RCL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 4 | 215.00 | 8.05 | 22 | 36.6 | 0.00 (0.0%) | |
| Apr 11 | 215.00 | 9.00 | 29 | 31.0 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Mar 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | QBTS dividend | |
| 2. | SPY dividend | 7. | KWEB dividend | 2. | ZIM dividend | |
| 3. | IWM dividend | 8. | TSLA dividend | 3. | RGTI dividend | |
| 4. | FXI dividend | 9. | INTC dividend | 4. | SLNO dividend | |
| 5. | QQQ dividend | 10. | TLT dividend | 5. | SOUN dividend | |
Want more examples? RCKT Dividend | RCUS Dividend
