CENT Dividend Type Payments

CENTRAL GARDEN & PET dividend

Although CENT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on CENTRAL GARDEN & PET to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 12:50 PM ET):

CENTRAL GARDEN & PET (CENT)
Bid Ask Last Change Volume P/E Market Cap
38.88 38.99 38.94 -0.26 68K 17 2.1B

CENT Dividend-Like Income Using Covered Calls

With CENT at 38.94, 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% 1.17 0.3
5% 1.95 0.5
10% 3.89 1.1

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 CENT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 40.00 0.05 3 1.7 1.01 (2.6%)
Sep 21 40.00 0.80 38 2.1 1.01 (2.6%)
5% Yield On CENT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 40.00 0.05 3 1.7 1.01 (2.6%)
Sep 21 40.00 0.80 38 2.1 1.01 (2.6%)
10% Yield On CENT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 40.00 0.05 3 1.7 1.01 (2.6%)
Sep 21 40.00 0.80 38 2.1 1.01 (2.6%)

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Want more examples? CELG Dividend | CENTA Dividend