CHTR Dividend Type Payments

Charter Communications, Inc. - Class A dividend

Although CHTR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Charter Communications, Inc. - Class A 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):

Charter Communications, Inc. - Class A (CHTR)
Bid Ask Last Change Volume P/E Market Cap
244.00 248.00 244.20 +0.28 1.4M 6.7 68B

CHTR Dividend-Like Income Using Covered Calls

With CHTR at 244.20, 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% 7.33 2.0
5% 12.21 3.3
10% 24.42 6.7

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 CHTR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 7 247.50 11.90 15 76.0 0.00 (0.0%)
Nov 14 250.00 14.60 22 66.4 2.00 (0.8%)
5% Yield On CHTR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 7 247.50 11.90 15 76.0 0.00 (0.0%)
Nov 14 250.00 14.60 22 66.4 2.00 (0.8%)
10% Yield On CHTR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 7 247.50 11.90 15 76.0 0.00 (0.0%)
Nov 14 250.00 14.60 22 66.4 2.00 (0.8%)

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