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 Wed 12:45 PM ET):
| Zoom Video Communications, Inc. - Class A (ZM) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 74.87 |
74.93 |
74.90 |
+0.68 |
1.9M |
25 |
23B |
ZM Dividend-Like Income Using Covered Calls
With ZM at 74.90, 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% |
2.25 |
0.6 |
| 5% |
3.75 |
1.0 |
| 10% |
7.49 |
2.1 |
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 |
| Apr 4 |
75.00 |
2.97 |
38 |
7.8 |
0.07 (0.1%) |
| Mar 7 |
75.00 |
1.54 |
10 |
15.4 |
0.07 (0.1%) |
| 5% Yield On ZM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 4 |
75.00 |
2.97 |
38 |
7.8 |
0.07 (0.1%) |
| Mar 7 |
75.00 |
1.54 |
10 |
15.4 |
0.07 (0.1%) |
| 10% Yield On ZM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 4 |
75.00 |
2.97 |
38 |
7.8 |
0.07 (0.1%) |
| Mar 7 |
75.00 |
1.54 |
10 |
15.4 |
0.07 (0.1%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
