ZTS Dividend
Although ZTS has a dividend of 0.43 with an ex-dividend date of Oct 31, 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 |
| 186.36 | 193.36 | 190.08 | -0.20 | 1.8M | 37 | 86B |
ZTS Dividend-Like Income Using Covered Calls
With ZTS at 190.08, 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% | 5.70 | 1.6 |
| 5% | 9.50 | 2.6 |
| 10% | 19.01 | 5.2 |
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 | |
| Nov 15 | 195.00 | 5.20 | 36 | 14.4 | 1.64 (0.9%) | |
| Oct 18 | 195.00 | 0.35 | 8 | 4.4 | 1.64 (0.9%) | |
| 5% Yield On ZTS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 15 | 195.00 | 5.20 | 36 | 14.4 | 1.64 (0.9%) | |
| Oct 18 | 195.00 | 0.35 | 8 | 4.4 | 1.64 (0.9%) | |
| 10% Yield On ZTS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 15 | 195.00 | 5.20 | 36 | 14.4 | 1.64 (0.9%) | |
| Jan 17 | 195.00 | 8.20 | 99 | 8.3 | 1.64 (0.9%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | DJT dividend | |
| 2. | IWM dividend | 7. | SLV dividend | 2. | CPRI dividend | |
| 3. | FXI dividend | 8. | TSLA dividend | 3. | WOLF dividend | |
| 4. | SPY dividend | 9. | SMCI dividend | 4. | ARDX dividend | |
| 5. | QQQ dividend | 10. | HYG dividend | 5. | SAVA dividend | |
Want more examples? ZTO Dividend | ZUMZ Dividend
