ZTS Dividend
Although ZTS has a dividend of 0.50 with an ex-dividend date of Jul 18, 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 Thu 4:16 PM ET):
| Zoetis Inc. Class A (ZTS) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 156.50 | 161.07 | 159.18 | +0.10 | 1.4M | 29 | 71B |
ZTS Dividend-Like Income Using Covered Calls
With ZTS at 159.18, 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% | 4.78 | 1.3 |
| 5% | 7.96 | 2.2 |
| 10% | 15.92 | 4.4 |
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 | |
| Aug 15 | 165.00 | 3.90 | 44 | 8.9 | 3.93 (2.5%) | |
| Oct 17 | 165.00 | 6.00 | 107 | 5.6 | 3.93 (2.5%) | |
| 5% Yield On ZTS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 165.00 | 3.90 | 44 | 8.9 | 3.93 (2.5%) | |
| Oct 17 | 165.00 | 6.00 | 107 | 5.6 | 3.93 (2.5%) | |
| 10% Yield On ZTS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 165.00 | 3.90 | 44 | 8.9 | 3.93 (2.5%) | |
| Oct 17 | 165.00 | 6.00 | 107 | 5.6 | 3.93 (2.5%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | QUBT dividend | |
| 2. | SLV dividend | 7. | AAPL dividend | 2. | COGT dividend | |
| 3. | SPY dividend | 8. | TLT dividend | 3. | IONQ dividend | |
| 4. | IWM dividend | 9. | IBIT dividend | 4. | TMC dividend | |
| 5. | TSLA dividend | 10. | QQQ dividend | 5. | SMMT dividend | |
Want more examples? ZTO Dividend | ZUMZ Dividend
