ZTS Dividend

Zoetis Inc. Class A dividend

Although ZTS has a dividend of 0.53 with an ex-dividend date of Jan 20, 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
121.00 123.00 122.24 -0.52 10.6M 21 54B

ZTS Dividend-Like Income Using Covered Calls

With ZTS at 122.24, 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% 3.67 1.0
5% 6.11 1.7
10% 12.22 3.3

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
Jan 16 125.00 1.30 29 4.5 2.00 (1.6%)
Apr 17 125.00 7.30 120 6.1 2.00 (1.6%)
5% Yield On ZTS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 16 125.00 1.30 29 4.5 2.00 (1.6%)
Apr 17 125.00 7.30 120 6.1 2.00 (1.6%)
10% Yield On ZTS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 16 125.00 1.30 29 4.5 2.00 (1.6%)
Apr 17 125.00 7.30 120 6.1 2.00 (1.6%)

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