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 Tue 4:16 PM ET):

Cabot Corp (CBT)
Bid Ask Last Change Volume P/E Market Cap
45.49 58.98 45.49 -0.13 245K 10 2.7B

CBT Dividend-Like Income Using Covered Calls

With CBT at 45.49, 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% 1.36 0.4
5% 2.27 0.6
10% 4.55 1.2

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:

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Top 10 Open Interest For Jul 19 Expiration     Top 5 High Yield
1.SPY dividend 6.USO dividend   1.BYND dividend
2.SPX dividend 7.OIH dividend   2.BB dividend
3.EEM dividend 8.QCOM dividend   3.ITCI dividend
4.QQQ dividend 9.FXI dividend   4.KPTI dividend
5.IWM dividend 10.AAPL dividend   5.OSTK dividend

Want more examples? CBSH Dividend | CBU Dividend