CHTR Dividend Type Payments

CHARTER COMMUNICATIONS dividend

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

CHARTER COMMUNICATIONS (CHTR)
Bid Ask Last Change Volume P/E Market Cap
290.00 325.67 319.61 -1.73 820K 8.2 74B

CHTR Dividend-Like Income Using Covered Calls

With CHTR at 319.61, 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% 9.59 2.6
5% 15.98 4.4
10% 31.96 8.8

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
Oct 26 367.50 0.15 5 3.0 41.83 (13.1%)
Nov 2 367.50 0.45 12 3.8 41.83 (13.1%)
5% Yield On CHTR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 365.00 0.25 5 5.0 39.33 (12.3%)
Nov 2 365.00 0.55 12 4.6 39.33 (12.3%)
10% Yield On CHTR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 355.00 0.55 5 11.0 29.33 (9.2%)
Nov 2 355.00 1.20 12 10.0 29.33 (9.2%)

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