CMC Dividend Type Payments

Commercial Metals Co dividend

Although CMC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Commercial Metals Co to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

Commercial Metals Co (CMC)
Bid Ask Last Change Volume P/E Market Cap
16.75 17.74 16.99 +0.15 1.6M 16 2.0B

CMC Dividend-Like Income Using Covered Calls

With CMC at 16.99, 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% 0.51 0.1
5% 0.85 0.2
10% 1.70 0.5

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 CMC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 18.00 0.15 22 0.7 0.26 (1.5%)
Apr 18 20.00 0.15 56 0.3 2.26 (13.3%)
5% Yield On CMC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 18.00 0.15 22 0.7 0.26 (1.5%)
Apr 18 20.00 0.15 56 0.3 2.26 (13.3%)
10% Yield On CMC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 18.00 0.15 22 0.7 0.26 (1.5%)
Apr 18 19.00 0.30 56 0.5 1.26 (7.4%)

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Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
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Want more examples? CMBS Dividend | CMCM Dividend