CVGW Dividend Type Payments
Although CVGW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Calavo Growers, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 9:40 AM ET):
| Calavo Growers, Inc. (CVGW) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 26.09 | 26.69 | 26.47 | +0.16 | 2K | 45 | 0.5B |
CVGW Dividend-Like Income Using Covered Calls
With CVGW at 26.47, 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% | 0.79 | 0.2 |
| 5% | 1.32 | 0.4 |
| 10% | 2.65 | 0.7 |
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:
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| Top 10 Open Interest For Aug 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | IBIT dividend | 1. | EOSE dividend | |
| 2. | NVDA dividend | 7. | TSLA dividend | 2. | RDDT dividend | |
| 3. | GLD dividend | 8. | AMZN dividend | 3. | RBLX dividend | |
| 4. | IWM dividend | 9. | QQQ dividend | 4. | NET dividend | |
| 5. | SPY dividend | 10. | INTC dividend | 5. | MBX dividend | |
Want more examples? CVGI Dividend | CVI Dividend
