CDNS Dividend Type Payments

Cadence Design Systems, Inc dividend

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

Cadence Design Systems, Inc (CDNS)
Bid Ask Last Change Volume P/E Market Cap
43.44 45.78 43.38 +0.71 1.6M - 0.0B

CDNS Dividend-Like Income Using Covered Calls

With CDNS at 43.38, 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% 1.30 0.4
5% 2.17 0.6
10% 4.34 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:

3% Yield On CDNS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 46.00 0.05 12 0.4 0.22 (0.5%)
Jan 18 48.00 0.20 40 0.5 2.22 (5.1%)
5% Yield On CDNS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 47.00 0.40 40 1.0 1.22 (2.8%)
Feb 15 49.00 0.45 68 0.7 3.22 (7.4%)
10% Yield On CDNS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 46.00 0.60 40 1.5 0.22 (0.5%)
Feb 15 46.00 1.20 68 1.8 0.22 (0.5%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.DXPE dividend 6.NXTM dividend   1. dividend
2.NVT dividend 7.MTOR dividend   2. dividend
3.MSEX dividend 8.WLTW dividend   3. dividend
4.WGP dividend 9.EDZ dividend   4. dividend
5.ECH dividend 10.ODFL dividend   5. dividend

Want more examples? CDNA Dividend | CDR Dividend