OTEX Dividend Type Payments

Open Text Corporation - Common Shares dividend

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

Open Text Corporation - Common Shares (OTEX)
Bid Ask Last Change Volume P/E Market Cap
28.06 29.25 28.62 -0.18 1.6M 15 7.3B

OTEX Dividend-Like Income Using Covered Calls

With OTEX at 28.62, 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% 0.86 0.2
5% 1.43 0.4
10% 2.86 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 OTEX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 15 30.00 0.80 115 0.7 0.75 (2.6%)
Dec 18 30.00 1.15 332 0.3 0.75 (2.6%)
5% Yield On OTEX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 15 30.00 0.80 115 0.7 0.75 (2.6%)
Feb 20 32.50 0.20 31 0.6 3.25 (11.4%)

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