CLF Dividend Type Payments

Cleveland-Cliffs Inc. dividend

Although CLF has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Cleveland-Cliffs Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 2:10 PM ET):

Cleveland-Cliffs Inc. (CLF)
Bid Ask Last Change Volume P/E Market Cap
10.62 10.63 10.63 +0.07 11.8M - 5.2B

CLF Dividend-Like Income Using Covered Calls

With CLF at 10.63, 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% 0.32 0.1
5% 0.53 0.1
10% 1.06 0.3

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 CLF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 5 11.00 0.49 22 2.2 0.37 (3.5%)
Sep 12 11.00 0.57 29 2.0 0.37 (3.5%)
5% Yield On CLF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 5 11.00 0.49 22 2.2 0.37 (3.5%)
Sep 12 11.00 0.57 29 2.0 0.37 (3.5%)
10% Yield On CLF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 5 11.00 0.49 22 2.2 0.37 (3.5%)
Sep 12 11.00 0.57 29 2.0 0.37 (3.5%)

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