VRT Dividend Type Payments
Although VRT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vertiv Holdings, LLC Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| Vertiv Holdings, LLC Class A (VRT) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 67.75 |
68.00 |
67.47 |
-9.64 |
14.0M |
60 |
30B |
VRT Dividend-Like Income Using Covered Calls
With VRT at 67.47, 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% |
2.02 |
0.6 |
| 5% |
3.37 |
0.9 |
| 10% |
6.75 |
1.8 |
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 VRT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 2 |
100.00 |
0.33 |
30 |
1.1 |
32.00 (47.4%) |
| May 9 |
100.00 |
0.53 |
37 |
1.4 |
32.00 (47.4%) |
| 5% Yield On VRT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 2 |
100.00 |
0.33 |
30 |
1.1 |
32.00 (47.4%) |
| May 9 |
100.00 |
0.53 |
37 |
1.4 |
32.00 (47.4%) |
| 10% Yield On VRT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 2 |
68.00 |
6.05 |
30 |
20.2 |
0.00 (0.0%) |
| May 9 |
68.00 |
6.60 |
37 |
17.8 |
0.00 (0.0%) |
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