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 Wed 4:16 PM ET):

Canopy Growth Corp (CGC)
Bid Ask Last Change Volume P/E Market Cap
39.53 39.85 39.73 -0.04 3.2M -27.9 14B

CGC Dividend-Like Income Using Covered Calls

With CGC at 39.73, 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% 1.19 0.3
5% 1.99 0.5
10% 3.97 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 CGC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 28 49.50 0.01 3 0.3 9.65 (24.3%)
Jul 5 45.00 0.04 10 0.4 5.15 (13.0%)
5% Yield On CGC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 28 43.50 0.02 3 0.7 3.65 (9.2%)
Jul 5 44.50 0.07 10 0.7 4.65 (11.7%)
10% Yield On CGC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 28 42.50 0.04 3 1.3 2.65 (6.7%)
Jul 5 43.50 0.11 10 1.1 3.65 (9.2%)

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Want more examples? CGA Dividend | CGEN Dividend