CIA Dividend Type Payments
Although CIA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on CITIZENS 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):
| CITIZENS (CIA) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 7.75 | 8.37 | 7.75 | -0.30 | 55K | - | 0.4B |
CIA Dividend-Like Income Using Covered Calls
With CIA at 7.75, 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% | 0.23 | 0.1 |
| 5% | 0.39 | 0.1 |
| 10% | 0.78 | 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:
| 3% Yield On CIA Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 17 | 10.00 | 0.15 | 212 | 0.1 | 1.63 (21.0%) | |
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| Top 10 Open Interest For Oct 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | PBR dividend | 1. | LLNW dividend | |
| 2. | SPX dividend | 7. | MU dividend | 2. | CLF dividend | |
| 3. | QQQ dividend | 8. | IWM dividend | 3. | PYPL dividend | |
| 4. | EEM dividend | 9. | FXI dividend | 4. | SKX dividend | |
| 5. | BAC dividend | 10. | AMD dividend | 5. | UVXY dividend | |
Want more examples? CI Dividend | CIBR Dividend
