ZTS Dividend

Zoetis Inc. Class A dividend

Although ZTS has a dividend of 0.50 with an ex-dividend date of Jan 21, you can sell covered calls on Zoetis Inc. Class A 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):

Zoetis Inc. Class A (ZTS)
Bid Ask Last Change Volume P/E Market Cap
162.48 166.00 165.89 -3.48 4.6M 32 76B

ZTS Dividend-Like Income Using Covered Calls

With ZTS at 165.89, 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% 4.98 1.4
5% 8.29 2.3
10% 16.59 4.5

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 ZTS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 170.00 4.50 91 4.9 4.00 (2.4%)
Jul 18 170.00 9.20 183 5.0 4.00 (2.4%)
5% Yield On ZTS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 170.00 4.50 91 4.9 4.00 (2.4%)
Jul 18 170.00 9.20 183 5.0 4.00 (2.4%)
10% Yield On ZTS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 170.00 4.50 91 4.9 4.00 (2.4%)
Jul 18 170.00 9.20 183 5.0 4.00 (2.4%)

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