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 Fri 4:16 PM ET):
| Open Text Corporation - Common Shares (OTEX) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 31.00 | 36.00 | 33.09 | +0.52 | 789K | 17 | 8.2B |
OTEX Dividend-Like Income Using Covered Calls
With OTEX at 33.09, 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% | 0.99 | 0.3 |
| 5% | 1.65 | 0.5 |
| 10% | 3.31 | 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 | 37.50 | 0.70 | 176 | 0.4 | 1.50 (4.5%) | |
| Feb 20 | 37.50 | 0.30 | 92 | 0.3 | 1.50 (4.5%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Dec 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | RZLT dividend | |
| 2. | IWM dividend | 7. | SLV dividend | 2. | IMNM dividend | |
| 3. | SPY dividend | 8. | TLT dividend | 3. | VTYX dividend | |
| 4. | IBIT dividend | 9. | GLD dividend | 4. | JANX dividend | |
| 5. | QQQ dividend | 10. | NFLX dividend | 5. | CIFR dividend | |
Want more examples? OSW Dividend | OTIS Dividend
