CPS Dividend Type Payments
Although CPS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Cooper-Standard Holdings Inc. 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):
| Cooper-Standard Holdings Inc. (CPS) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 29.55 | 32.16 | 30.92 | -0.33 | 108K | 17 | 0.6B |
CPS Dividend-Like Income Using Covered Calls
With CPS at 30.92, 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% | 0.93 | 0.3 |
| 5% | 1.55 | 0.4 |
| 10% | 3.09 | 0.8 |
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 CPS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 35.00 | 0.05 | 19 | 0.3 | 2.84 (9.2%) | |
| Jan 16 | 40.00 | 0.20 | 47 | 0.4 | 7.84 (25.4%) | |
| 5% Yield On CPS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 16 | 40.00 | 0.20 | 47 | 0.4 | 7.84 (25.4%) | |
| Apr 17 | 35.00 | 1.75 | 138 | 1.3 | 2.84 (9.2%) | |
| 10% Yield On CPS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 35.00 | 1.75 | 138 | 1.3 | 2.84 (9.2%) | |
| Jul 17 | 35.00 | 4.50 | 229 | 2.0 | 2.84 (9.2%) | |
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| Top 10 Open Interest For Dec 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | JANX dividend | |
| 2. | SPY dividend | 7. | GLD dividend | 2. | RZLT dividend | |
| 3. | IWM dividend | 8. | SLV dividend | 3. | IMNM dividend | |
| 4. | QQQ dividend | 9. | TLT dividend | 4. | PATH dividend | |
| 5. | IBIT dividend | 10. | FXI dividend | 5. | HUT dividend | |
Want more examples? CPRX Dividend | CPSS Dividend
