ROL Dividend Type Payments

Rollins, Inc. dividend

Although ROL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Rollins, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 11:20 AM ET):

Rollins, Inc. (ROL)
Bid Ask Last Change Volume P/E Market Cap
55.57 55.63 55.59 +0.24 266K 58 27B

ROL Dividend-Like Income Using Covered Calls

With ROL at 55.59, 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% 1.67 0.5
5% 2.78 0.8
10% 5.56 1.5

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 ROL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 57.50 2.30 122 1.9 1.87 (3.4%)
May 16 57.50 1.10 31 3.5 1.87 (3.4%)
5% Yield On ROL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 57.50 2.30 122 1.9 1.87 (3.4%)
May 16 57.50 1.10 31 3.5 1.87 (3.4%)
10% Yield On ROL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 57.50 2.30 122 1.9 1.87 (3.4%)
May 16 57.50 1.10 31 3.5 1.87 (3.4%)

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