CRS Dividend Type Payments

Although CRS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Carpenter Technology Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

Carpenter Technology Corporation (CRS)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
340.00	349.89	348.65	+14.46	1.0M	39	17B

CRS Dividend-Like Income Using Covered Calls

With CRS at 348.65, 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%	10.46	2.9
5%	17.43	4.8
10%	34.87	9.6

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 CRS Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 15	350.00	36.50	100	36.5	0.11 (0.0%)
Oct 16	350.00	57.00	254	22.4	0.11 (0.0%)

5% Yield On CRS Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 15	350.00	36.50	100	36.5	0.11 (0.0%)
Oct 16	350.00	57.00	254	22.4	0.11 (0.0%)

10% Yield On CRS Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 15	350.00	36.50	100	36.5	0.11 (0.0%)
Oct 16	350.00	57.00	254	22.4	0.11 (0.0%)

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Want more examples? CROX Dividend | CRSP Dividend