CNI Dividend

Canadian National Railway Company dividend

Although CNI has a dividend of 0.68 with an ex-dividend date of Mar 10, you can sell covered calls on Canadian National Railway Company to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 12:40 PM ET):

Canadian National Railway Company (CNI)
Bid Ask Last Change Volume P/E Market Cap
99.36 99.43 99.39 +2.87 1.1M 18 76B

CNI Dividend-Like Income Using Covered Calls

With CNI at 99.39, 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% 2.98 0.8
5% 4.97 1.4
10% 9.94 2.7

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 CNI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 100.00 3.50 73 4.8 0.57 (0.6%)
Jul 17 100.00 5.50 164 3.4 0.57 (0.6%)
5% Yield On CNI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 100.00 3.50 73 4.8 0.57 (0.6%)
Jul 17 100.00 5.50 164 3.4 0.57 (0.6%)
10% Yield On CNI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 100.00 3.50 73 4.8 0.57 (0.6%)
Jul 17 100.00 5.50 164 3.4 0.57 (0.6%)

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