CAH Dividend Type Payments
Although CAH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Cardinal Health, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 11:55 AM ET):
Cardinal Health, Inc. (CAH) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
111.64 | 111.66 | 111.66 | -0.38 | 345K | 44 | 27B |
CAH Dividend-Like Income Using Covered Calls
With CAH at 111.66, 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% | 3.35 | 0.9 |
5% | 5.58 | 1.5 |
10% | 11.17 | 3.1 |
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 CAH Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 5 | 112.00 | 1.10 | 9 | 12.2 | 0.34 (0.3%) | |
Apr 12 | 112.00 | 1.45 | 16 | 9.1 | 0.34 (0.3%) |
5% Yield On CAH Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 5 | 112.00 | 1.10 | 9 | 12.2 | 0.34 (0.3%) | |
Apr 12 | 112.00 | 1.45 | 16 | 9.1 | 0.34 (0.3%) |
10% Yield On CAH Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 5 | 112.00 | 1.10 | 9 | 12.2 | 0.34 (0.3%) | |
Apr 12 | 112.00 | 1.45 | 16 | 9.1 | 0.34 (0.3%) |
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Top 10 Open Interest For Apr 19 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | TLT dividend | 1. | MRNS dividend | |
2. | SPY dividend | 7. | HYG dividend | 2. | RILY dividend | |
3. | QQQ dividend | 8. | AAPL dividend | 3. | LUNR dividend | |
4. | FXI dividend | 9. | EEM dividend | 4. | SOUN dividend | |
5. | SLV dividend | 10. | TSLA dividend | 5. | ALT dividend |
Want more examples? CAG Dividend | CAKE Dividend