CHFC Dividend Type Payments

CHEMICAL FINANCIAL dividend

Although CHFC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on CHEMICAL FINANCIAL to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 1:30 PM ET):

CHEMICAL FINANCIAL (CHFC)
Bid Ask Last Change Volume P/E Market Cap
50.13 50.19 50.15 -0.32 277K 19 3.6B

CHFC Dividend-Like Income Using Covered Calls

With CHFC at 50.15, 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% 1.50 0.4
5% 2.51 0.7
10% 5.02 1.4

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 CHFC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 55.00 0.15 30 0.5 4.81 (9.6%)
Dec 21 55.00 0.45 65 0.7 4.81 (9.6%)
5% Yield On CHFC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 50.00 1.60 30 4.7 0.00 (0.0%)
Dec 21 55.00 0.45 65 0.7 4.81 (9.6%)
10% Yield On CHFC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 50.00 1.60 30 4.7 0.00 (0.0%)
Dec 21 50.00 2.05 65 2.9 0.00 (0.0%)

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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.LLNW dividend
3.QQQ dividend 8.IWM dividend   3.CLF dividend
4.EEM dividend 9.FXI dividend   4.UVXY dividend
5.BAC dividend 10.AMD dividend   5.PYPL dividend

Want more examples? CHEP Dividend | CHGG Dividend