ZM Dividend Type Payments
Although ZM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Zoom Video Communications, 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 Fri 4:16 PM ET):
| Zoom Video Communications, Inc. - Class A (ZM) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 81.01 |
81.14 |
81.14 |
-1.49 |
2.2M |
30 |
25B |
ZM Dividend-Like Income Using Covered Calls
With ZM at 81.14, 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% |
2.43 |
0.7 |
| 5% |
4.06 |
1.1 |
| 10% |
8.11 |
2.2 |
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 ZM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 6 |
100.00 |
0.31 |
22 |
1.4 |
18.86 (23.2%) |
| Dec 13 |
100.00 |
0.26 |
29 |
0.9 |
18.86 (23.2%) |
| 5% Yield On ZM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 6 |
100.00 |
0.31 |
22 |
1.4 |
18.86 (23.2%) |
| Dec 13 |
81.00 |
4.20 |
29 |
14.0 |
0.00 (0.0%) |
| 10% Yield On ZM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 6 |
81.00 |
4.25 |
22 |
18.7 |
0.00 (0.0%) |
| Dec 13 |
81.00 |
4.20 |
29 |
14.0 |
0.00 (0.0%) |
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