RIO Dividend Type Payments

Rio Tinto Plc dividend

Although RIO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Rio Tinto Plc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 3:30 PM ET):

Rio Tinto Plc (RIO)
Bid Ask Last Change Volume P/E Market Cap
61.42 61.43 61.42 -0.30 2.0M - 85B

RIO Dividend-Like Income Using Covered Calls

With RIO at 61.42, 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% 1.84 0.5
5% 3.07 0.8
10% 6.14 1.7

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 RIO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 62.50 3.50 206 1.7 1.07 (1.7%)
Apr 17 62.50 1.95 86 2.3 1.07 (1.7%)
5% Yield On RIO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 62.50 3.50 206 1.7 1.07 (1.7%)
Apr 17 62.50 1.95 86 2.3 1.07 (1.7%)
10% Yield On RIO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 62.50 3.50 206 1.7 1.07 (1.7%)
Apr 17 62.50 1.95 86 2.3 1.07 (1.7%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For Feb 21 Expiration     Top 5 High Yield
1.NVDA dividend 6.SLV dividend   1.QUBT dividend
2.TLT dividend 7.TSLA dividend   2.IONQ dividend
3.SPY dividend 8.AMZN dividend   3.SMCI dividend
4.IWM dividend 9.AAPL dividend   4.SNAP dividend
5.FXI dividend 10.ASHR dividend   5.MBLY dividend

Want more examples? RING Dividend | RIOT Dividend