CHX Dividend
Although CHX has a dividend of 0.10 with an ex-dividend date of Jul 3, you can sell covered calls on ChampionX Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| ChampionX Corporation (CHX) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 24.38 |
25.35 |
24.86 |
+0.44 |
3.0M |
16 |
4.7B |
CHX Dividend-Like Income Using Covered Calls
With CHX at 24.86, 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% |
0.75 |
0.2 |
| 5% |
1.24 |
0.3 |
| 10% |
2.49 |
0.7 |
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 CHX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
27.50 |
0.35 |
51 |
0.7 |
2.15 (8.6%) |
| Jan 16 |
27.50 |
0.50 |
205 |
0.2 |
2.15 (8.6%) |
| 5% Yield On CHX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
27.50 |
0.35 |
51 |
0.7 |
2.15 (8.6%) |
| 10% Yield On CHX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
27.50 |
0.35 |
51 |
0.7 |
2.15 (8.6%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
