In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Marriott Vacations Worldwide Corp., looking at the dividend history chart for VAC below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 4% annualized dividend yield.
Below is a chart showing VAC's trailing twelve month trading history, with the $90 strike highlighted in red:
The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the July 2025 covered call at the $90 strike gives good reward for the risk of having given away the upside beyond $90. (Do most options expire worthless? This and six other common options myths debunked). We calculate the trailing twelve month volatility for Marriott Vacations Worldwide Corp. (considering the last 251 trading day closing values as well as today's price of $75.53) to be 41%. For other call options contract ideas at the various different available expirations, visit the VAC Stock Options page of StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
