CFR Dividend Type Payments
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 Wed 4:16 PM ET):
| Cullen/Frost Bankers, Inc. (CFR) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 88.00 | 138.00 | 123.56 | +0.82 | 295K | 14 | 7.9B |
CFR Dividend-Like Income Using Covered Calls
With CFR at 123.56, 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% | 3.71 | 1.0 |
| 5% | 6.18 | 1.7 |
| 10% | 12.36 | 3.4 |
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 | |
| Jan 16 | 140.00 | 2.75 | 213 | 1.3 | 2.00 (1.6%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | TSLA dividend | 1. | ALT dividend | |
| 2. | NVDA dividend | 7. | IWM dividend | 2. | RUN dividend | |
| 3. | SPY dividend | 8. | AAPL dividend | 3. | CAPR dividend | |
| 4. | GLD dividend | 9. | FXI dividend | 4. | SWBI dividend | |
| 5. | TLT dividend | 10. | CLSK dividend | 5. | QUBT dividend | |
Want more examples? CFG Dividend | CG Dividend
