CHKP Dividend Type Payments

Check Point Software Technologies Ltd dividend

Although CHKP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Check Point Software Technologies Ltd 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):

Check Point Software Technologies Ltd (CHKP)
Bid Ask Last Change Volume P/E Market Cap
123.00 125.43 125.43 -0.73 746K 25 20B

CHKP Dividend-Like Income Using Covered Calls

With CHKP at 125.43, 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% 3.76 1.0
5% 6.27 1.7
10% 12.54 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 CHKP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 130.00 0.90 28 3.2 4.57 (3.6%)
May 17 135.00 1.30 57 2.3 9.57 (7.6%)
5% Yield On CHKP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 130.00 0.90 28 3.2 4.57 (3.6%)
May 17 135.00 1.30 57 2.3 9.57 (7.6%)
10% Yield On CHKP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 125.00 2.90 28 8.8 0.00 (0.0%)
May 17 130.00 2.70 57 4.7 4.57 (3.6%)

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