CLCT Dividend

COLLECTORS UNIVERSE dividend

Although CLCT has a dividend of 0.18 with an ex-dividend date of Aug 16, you can sell covered calls on COLLECTORS UNIVERSE to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 12:50 PM ET):

COLLECTORS UNIVERSE (CLCT)
Bid Ask Last Change Volume P/E Market Cap
13.29 13.36 13.36 -0.05 10K 18 0.1B

CLCT Dividend-Like Income Using Covered Calls

With CLCT at 13.36, 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% 0.40 0.1
5% 0.67 0.2
10% 1.34 0.4

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 CLCT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 17.50 0.10 66 0.2 4.14 (31.0%)
Jan 18 15.00 0.55 157 0.4 1.64 (12.3%)
5% Yield On CLCT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 15.00 0.30 66 0.5 1.64 (12.3%)
Jan 18 15.00 0.55 157 0.4 1.64 (12.3%)
10% Yield On CLCT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 15.00 0.30 66 0.5 1.64 (12.3%)

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