CDEV Dividend Type Payments

Although CDEV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Centennial Resource Development, Inc CL 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):

Centennial Resource Development, Inc CL A (CDEV)
Bid Ask Last Change Volume P/E Market Cap
8.74 9.45 8.71 -0.55 3.6M 12 2.6B

CDEV Dividend-Like Income Using Covered Calls

With CDEV at 8.71, 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% 0.26 0.1
5% 0.44 0.1
10% 0.87 0.2

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:

3% Yield On CDEV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 10.00 0.25 57 0.4 0.55 (6.3%)
Jul 19 12.50 0.10 120 0.1 3.05 (35.0%)
5% Yield On CDEV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 10.00 0.25 57 0.4 0.55 (6.3%)
Jul 19 10.00 0.50 120 0.4 0.55 (6.3%)
10% Yield On CDEV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 10.00 0.25 57 0.4 0.55 (6.3%)
Jul 19 10.00 0.50 120 0.4 0.55 (6.3%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Apr 18 Expiration     Top 5 High Yield
1.SPY dividend 6.USO dividend   1.ACB dividend
2.EEM dividend 7.AAPL dividend   2.ROKU dividend
3.SPX dividend 8.BMY dividend   3.BCRX dividend
4.QQQ dividend 9.IWM dividend   4.AMD dividend
5.FXI dividend 10.NIO dividend   5.NBEV dividend

Want more examples? CDE Dividend | CDK Dividend