This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

High-Yielding Dividend Captures: Right Companies Can Offer Superior Returns

Deere & Co.

Deere & Co. (DE - Get Report) is the one world's foremost producers of agricultural equipment as well as a leading maker of construction, forestry, and commercial and consumer equipment. The company was founded in 1837 and is based in Moline, Ill.
Yield: 2.61%
Dividend amount: 46 cents
Ex-dividend date: June 27
Beta: 1.53

Strategy: Buy Deere stock and offer to sell the July $67.50 strike or lower call for 87 cents over the intrinsic value. I will try to close out the trade with a gain of near 26 cents, plus dividend.

The most I can make is $1.33 if I hold the covered call through option expiration day and the stock gets called away.


Illinois Tool Works

Illinois Tool Works (ITW - Get Report) makes and markets a variety of products and systems that provide specific, problem-solving solutions for a diverse customer base worldwide. The company was founded in 1912 and is based in Glenview, Illinois.
Yield: 2.65%
Dividend amount: 36 cents
Ex-dividend date: June 27
Beta: Beta: 1.18

Strategy: Buy Illinois Tool Works stock and offer to sell the July $52.50 strike or lower call for 62 cents over the intrinsic value. I will try to close out the trade with a gain of near 41 cents, plus dividend.

The profit potential is 98 cents if I hold the covered call through option expiration day and the stock gets called away.


Cypress Semiconductor

Cypress Semiconductor (CY - Get Report) designs, develops, makes and markets a broad line of high-performance digital and mixed-signal integrated circuits for a range of markets. The company was founded in 1982 and is headquartered in San Jose, Calif.
Yield: Yield: 3.56%
Dividend amount: 11 cents
Ex-dividend date: June 26
Beta: 1.34

Strategy: Buy Cypress stock and offer to sell the July $12 strike or lower call for 35 cents over the intrinsic value. I will try to close out the trade with a gain of near 25 cents, plus dividend.

The most I can make is 46 cents if I hold the covered call through option expiration day and the stock gets called away.


Dow Chemical

Dow Chemical (DOW - Get Report) is a science and technology company that provides innovative chemical, plastic and agricultural products and services to many essential consumer markets. The company was founded in 1897 and is based in Midland, Mich.
Yield: Yield: 4.2%
Dividend amount: 32 cents
Ex-dividend date: June 27
Beta: 2.34

Strategy: Buy Dow stock and offer to sell the July $28 strike or lower call for 27 cents over the intrinsic value. I will look to close out the covered option with a gain of about 17 cents, plus the dividend paid by the company.

The upside potential is 59 cents if held the through option expiration day and the stock gets called away.


Kraft

Kraft (KFT) is the largest branded food and beverage company based in the U.S. and the second-largest in the world. The company was founded in 1903 and is based in Northfield, Ill.
Yield: Yield: 3.08%
Dividend amount: 29 cents
Ex-dividend date: June 27
Beta: 0.54

Strategy: Buy Kraft stock and offer to sell the July $38 strike or lower call for 51 cents over the intrinsic value. I will try to close out the trade with a gain of near 15 cents, plus dividend.

The most that can be gained is 80 cents if held through option expiration day and the stock gets called away.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

At the time of publication the author held no positions in any stock mentioned.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
CY $14.12 0.07%
DE $88.05 -0.63%
DOW $48.20 -0.99%
ITW $97.39 -0.51%
STJ $65.78 -1.30%

Markets

DOW 17,883.89 -92.42 -0.51%
S&P 500 2,080.84 -5.40 -0.26%
NASDAQ 4,931.9440 -15.4970 -0.31%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs