RKT Dividend Type Payments

Rocket Companies, Inc. Class A dividend

Although RKT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Rocket Companies, 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 4:16 PM ET):

Rocket Companies, Inc. Class A (RKT)
Bid Ask Last Change Volume P/E Market Cap
13.79 14.10 14.13 -1.41 13.2M 155 31B

RKT Dividend-Like Income Using Covered Calls

With RKT at 14.13, 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% 0.42 0.1
5% 0.71 0.2
10% 1.41 0.4

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 RKT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 6 14.50 0.50 24 2.1 0.40 (2.8%)
Dec 13 14.50 0.65 31 2.1 0.40 (2.8%)
5% Yield On RKT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 6 14.50 0.50 24 2.1 0.40 (2.8%)
Dec 13 14.50 0.65 31 2.1 0.40 (2.8%)
10% Yield On RKT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 6 14.50 0.50 24 2.1 0.40 (2.8%)
Dec 13 14.50 0.65 31 2.1 0.40 (2.8%)

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