OTEX Dividend

Although OTEX has a dividend of 0.28 with an ex-dividend date of Dec 5, 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 Mon 10:05 AM ET):

Open Text Corporation - Common Shares (OTEX)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
33.62	33.65	33.63	-0.01	112K	18	8.5B

OTEX Dividend-Like Income Using Covered Calls

With OTEX at 33.63, 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%	1.01	0.3
5%	1.68	0.5
10%	3.36	0.9

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 OTEX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 15	35.00	2.10	166	1.3	1.35 (4.0%)
Jan 16	35.00	0.35	47	0.7	1.35 (4.0%)

5% Yield On OTEX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 15	35.00	2.10	166	1.3	1.35 (4.0%)
Jan 16	35.00	0.35	47	0.7	1.35 (4.0%)

10% Yield On OTEX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 15	35.00	2.10	166	1.3	1.35 (4.0%)
Feb 20	35.00	1.30	82	1.6	1.35 (4.0%)

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Want more examples? OSW Dividend | OTIS Dividend