CBT Dividend Type Payments

Cabot Corp dividend

Although CBT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Cabot Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 1:40 PM ET):

Cabot Corp (CBT)
Bid Ask Last Change Volume P/E Market Cap
47.73 47.76 47.73 -0.32 115K 38 2.9B

CBT Dividend-Like Income Using Covered Calls

With CBT at 47.73, here's a table showing how big the annual "dividend" (ie. 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% 1.43 0.4
5% 2.39 0.7
10% 4.77 1.3

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 CBT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 50.00 0.55 26 2.1 2.24 (4.7%)
Jul 19 50.00 1.25 89 1.4 2.24 (4.7%)
5% Yield On CBT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 50.00 0.55 26 2.1 2.24 (4.7%)
Jul 19 50.00 1.25 89 1.4 2.24 (4.7%)
10% Yield On CBT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 50.00 0.55 26 2.1 2.24 (4.7%)
Jul 19 50.00 1.25 89 1.4 2.24 (4.7%)

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Top 10 Open Interest For May 17 Expiration     Top 5 High Yield
1.SPY dividend 6.QQQ dividend   1.SNAP dividend
2.COTY dividend 7.BAC dividend   2.TWTR dividend
3.EEM dividend 8.EWZ dividend   3.BCRX dividend
4.FXI dividend 9.XOP dividend   4.TSLA dividend
5.SPX dividend 10.XLF dividend   5.F dividend

Want more examples? CBSH Dividend | CBU Dividend