CIA Dividend Type Payments
Although CIA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Citizens, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| Citizens, Inc (CIA) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 5.30 | 7.59 | 7.39 | +0.05 | 54K | - | 0.4B |
CIA Dividend-Like Income Using Covered Calls
With CIA at 7.39, 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% | 0.22 | 0.1 |
| 5% | 0.37 | 0.1 |
| 10% | 0.74 | 0.2 |
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:
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| Top 10 Open Interest For Aug 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | QQQ dividend | 1. | TWTR dividend | |
| 2. | FXI dividend | 7. | NIO dividend | 2. | SNAP dividend | |
| 3. | EEM dividend | 8. | BAC dividend | 3. | TSLA dividend | |
| 4. | SPX dividend | 9. | IWM dividend | 4. | FB dividend | |
| 5. | GDX dividend | 10. | GLD dividend | 5. | MGM dividend | |
Want more examples? CI Dividend | CIB Dividend
