CENT Dividend Type Payments
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 4:16 PM ET):
| CENTRAL GARDEN & PET (CENT) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 27.23 | 36.41 | 33.56 | -0.11 | 43K | 15 | 1.8B |
CENT Dividend-Like Income Using Covered Calls
With CENT at 33.56, 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% | 1.01 | 0.3 |
| 5% | 1.68 | 0.5 |
| 10% | 3.36 | 0.9 |
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 | |
| Jan 18 | 40.00 | 0.40 | 94 | 0.4 | 3.59 (10.7%) | |
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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? CELG Dividend | CENTA Dividend
