CFR Dividend Type Payments

Cullen/Frost Bankers, Inc. dividend

Although CFR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Cullen/Frost Bankers, 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):

Cullen/Frost Bankers, Inc. (CFR)
Bid Ask Last Change Volume P/E Market Cap
51.76 135.00 129.42 +0.21 491K 13 8.3B

CFR Dividend-Like Income Using Covered Calls

With CFR at 129.42, here's a table showing how big the annual "dividend" (i.e. 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% 3.88 1.1
5% 6.47 1.8
10% 12.94 3.5

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 CFR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 135.00 3.40 124 2.7 0.00 (0.0%)
Jul 17 135.00 6.10 215 2.8 0.00 (0.0%)
5% Yield On CFR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 135.00 3.40 124 2.7 0.00 (0.0%)
Jul 17 135.00 6.10 215 2.8 0.00 (0.0%)

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