CPA Dividend

Although CPA has a dividend of 1.61 with an ex-dividend date of May 30, you can sell covered calls on Copa Holdings, S.A. Copa Holdings, S.A. Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

Copa Holdings, S.A. Copa Holdings, S.A. Class A (CPA)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
105.50	107.77	106.47	+1.69	742K	7.2	4.4B

CPA Dividend-Like Income Using Covered Calls

With CPA at 106.47, 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%	3.19	0.9
5%	5.32	1.5
10%	10.65	2.9

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 CPA Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	110.00	3.40	85	4.0	2.23 (2.1%)
Jul 18	110.00	2.10	57	3.7	2.23 (2.1%)

5% Yield On CPA Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	110.00	3.40	85	4.0	2.23 (2.1%)
Jul 18	110.00	2.10	57	3.7	2.23 (2.1%)

10% Yield On CPA Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	110.00	3.40	85	4.0	2.23 (2.1%)
Jul 18	110.00	2.10	57	3.7	2.23 (2.1%)

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Want more examples? CP Dividend | CPB Dividend