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 Tue 3:55 PM ET):
| D/B/A Royal Caribbean Cruises Ltd. (RCL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 263.39 | 263.72 | 263.63 | +2.77 | 1.1M | 27 | 70B |
RCL Dividend-Like Income Using Covered Calls
With RCL at 263.63, 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% | 7.91 | 2.2 |
| 5% | 13.18 | 3.6 |
| 10% | 26.36 | 7.2 |
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 RCL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 7 | 262.50 | 3.15 | 4 | 48.3 | 0.00 (0.0%) | |
| Mar 7 | 265.00 | 9.90 | 32 | 30.9 | 1.28 (0.5%) | |
| 5% Yield On RCL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 7 | 262.50 | 3.15 | 4 | 48.3 | 0.00 (0.0%) | |
| Mar 7 | 265.00 | 9.90 | 32 | 30.9 | 1.28 (0.5%) | |
| 10% Yield On RCL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 7 | 262.50 | 3.15 | 4 | 48.3 | 0.00 (0.0%) | |
| Mar 7 | 265.00 | 9.90 | 32 | 30.9 | 1.28 (0.5%) | |
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| Top 10 Open Interest For Feb 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | FXI dividend | 1. | LUMN dividend | |
| 2. | TLT dividend | 7. | SLV dividend | 2. | AFRM dividend | |
| 3. | SPY dividend | 8. | QQQ dividend | 3. | SYM dividend | |
| 4. | IWM dividend | 9. | KWEB dividend | 4. | BILL dividend | |
| 5. | TSLA dividend | 10. | GLD dividend | 5. | ENPH dividend | |
Want more examples? RCKT Dividend | RCUS Dividend
