CCMP Dividend Type Payments

CABOT MICROELECTRONICS dividend

Although CCMP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on CABOT MICROELECTRONICS to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

CABOT MICROELECTRONICS (CCMP)
Bid Ask Last Change Volume P/E Market Cap
34.60 98.61 98.61 +0.13 125K 28 2.5B

CCMP Dividend-Like Income Using Covered Calls

With CCMP at 98.61, 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% 2.96 0.8
5% 4.93 1.4
10% 9.86 2.7

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 CCMP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 100.00 0.25 3 8.3 1.39 (1.4%)
Nov 16 110.00 0.40 31 1.3 11.39 (11.6%)
5% Yield On CCMP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 100.00 0.25 3 8.3 1.39 (1.4%)
Nov 16 105.00 1.30 31 4.2 6.39 (6.5%)
10% Yield On CCMP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 100.00 0.25 3 8.3 1.39 (1.4%)
Nov 16 105.00 1.30 31 4.2 6.39 (6.5%)

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Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.PBR dividend   1.CLVS dividend
2.SPX dividend 7.MU dividend   2.SKX dividend
3.QQQ dividend 8.FXI dividend   3.CLF dividend
4.EEM dividend 9.IWM dividend   4.CRBP dividend
5.BAC dividend 10.AMD dividend   5.TLRY dividend

Want more examples? CCLP Dividend | CCNE Dividend