CIG Dividend Type Payments
Although CIG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Comp En De Mn Cemig ADS American Depositary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 10:35 AM ET):
| Comp En De Mn Cemig ADS American Depositary Shares (CIG) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 2.60 | 2.61 | 2.60 | 0.00 | 204K | 5.4 | 51B |
CIG Dividend-Like Income Using Covered Calls
With CIG at 2.60, 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% | 0.08 | 0.0 |
| 5% | 0.13 | 0.0 |
| 10% | 0.26 | 0.1 |
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 May 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IWM dividend | 6. | EEM dividend | 1. | AAOI dividend | |
| 2. | SPY dividend | 7. | TSLA dividend | 2. | RBLX dividend | |
| 3. | QQQ dividend | 8. | SLV dividend | 3. | BYND dividend | |
| 4. | HYG dividend | 9. | TLT dividend | 4. | NVAX dividend | |
| 5. | FXI dividend | 10. | NVDA dividend | 5. | CLSK dividend | |
Want more examples? CIEN Dividend | CIM Dividend
