CGC Dividend Type Payments

CANOPY GROWTH CORP dividend

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

CANOPY GROWTH CORP (CGC)
Bid Ask Last Change Volume P/E Market Cap
33.88 33.90 33.75 +2.83 11.4M - 6.3B

CGC Dividend-Like Income Using Covered Calls

With CGC at 33.75, 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% 1.69 0.5
10% 3.38 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 CGC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 40.00 0.65 36 1.8 6.10 (18.1%)
Oct 19 50.00 0.25 64 0.4 16.10 (47.7%)
5% Yield On CGC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 40.00 0.65 36 1.8 6.10 (18.1%)
Oct 19 45.00 0.60 64 0.9 11.10 (32.9%)
10% Yield On CGC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 40.00 0.65 36 1.8 6.10 (18.1%)
Oct 19 45.00 0.60 64 0.9 11.10 (32.9%)

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Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.EEM dividend 6.GE dividend   1.COTY dividend
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4.QQQ dividend 9.IWM dividend   4.UVXY dividend
5.XLF dividend 10.GDX dividend   5.GPS dividend

Want more examples? CGA Dividend | CGEN Dividend