CBRE Dividend Type Payments
Although CBRE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on CBRE Group 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):
| CBRE Group Inc Class A (CBRE) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 120.30 |
132.74 |
126.57 |
+3.05 |
1.2M |
38 |
37B |
CBRE Dividend-Like Income Using Covered Calls
With CBRE at 126.57, 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% |
3.80 |
1.0 |
| 5% |
6.33 |
1.7 |
| 10% |
12.66 |
3.5 |
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 CBRE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
135.00 |
0.35 |
15 |
2.3 |
2.26 (1.8%) |
| Sep 19 |
135.00 |
6.10 |
141 |
4.3 |
2.26 (1.8%) |
| 5% Yield On CBRE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
135.00 |
0.35 |
15 |
2.3 |
2.26 (1.8%) |
| Sep 19 |
135.00 |
6.10 |
141 |
4.3 |
2.26 (1.8%) |
| 10% Yield On CBRE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
135.00 |
6.10 |
141 |
4.3 |
2.26 (1.8%) |
| Dec 19 |
135.00 |
9.30 |
232 |
4.0 |
2.26 (1.8%) |
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