CAH Dividend

Cardinal Health, Inc. dividend

Although CAH has a dividend of 0.51 with an ex-dividend date of Oct 1, you can sell covered calls on Cardinal Health, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

Cardinal Health, Inc. (CAH)
Bid Ask Last Change Volume P/E Market Cap
109.90 111.86 110.19 -1.65 2.8M 32 27B

CAH Dividend-Like Income Using Covered Calls

With CAH at 110.19, 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% 3.31 0.9
5% 5.51 1.5
10% 11.02 3.0

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 CAH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 1 112.00 1.35 39 3.5 0.14 (0.1%)
Oct 4 112.00 0.40 11 3.6 0.14 (0.1%)
5% Yield On CAH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 1 112.00 1.35 39 3.5 0.14 (0.1%)
Oct 4 112.00 0.40 11 3.6 0.14 (0.1%)
10% Yield On CAH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 1 112.00 1.35 39 3.5 0.14 (0.1%)
Oct 4 112.00 0.40 11 3.6 0.14 (0.1%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For Oct 18 Expiration     Top 5 High Yield
1.NVDA dividend 6.SLV dividend   1.CPRI dividend
2.IWM dividend 7.EEM dividend   2.DJT dividend
3.SPY dividend 8.TLT dividend   3.MBLY dividend
4.QQQ dividend 9.GLD dividend   4.SMMT dividend
5.HYG dividend 10.AAPL dividend   5.CLSK dividend

Want more examples? CAG Dividend | CAKE Dividend