CNXC Dividend
Although CNXC has a dividend of 0.36 with an ex-dividend date of Oct 24, you can sell covered calls on Concentrix Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| Concentrix Corporation (CNXC) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 44.16 |
45.66 |
45.12 |
+0.28 |
566K |
10 |
2.8B |
CNXC Dividend-Like Income Using Covered Calls
With CNXC at 45.12, 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% |
1.35 |
0.4 |
| 5% |
2.26 |
0.6 |
| 10% |
4.51 |
1.2 |
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 CNXC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
50.00 |
1.75 |
61 |
2.9 |
4.34 (9.6%) |
| Nov 21 |
50.00 |
0.95 |
33 |
2.9 |
4.34 (9.6%) |
| 5% Yield On CNXC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
50.00 |
1.75 |
61 |
2.9 |
4.34 (9.6%) |
| Nov 21 |
50.00 |
0.95 |
33 |
2.9 |
4.34 (9.6%) |
| 10% Yield On CNXC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
50.00 |
1.75 |
61 |
2.9 |
4.34 (9.6%) |
| Nov 21 |
50.00 |
0.95 |
33 |
2.9 |
4.34 (9.6%) |
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