CNI Dividend Type Payments

Canadian National Railway Co dividend

Although CNI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Canadian National Railway Co 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):

Canadian National Railway Co (CNI)
Bid Ask Last Change Volume P/E Market Cap
84.04 93.72 93.65 +0.51 838K 22 67B

CNI Dividend-Like Income Using Covered Calls

With CNI at 93.65, 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% 2.81 0.8
5% 4.68 1.3
10% 9.37 2.6

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
May 17 95.00 1.15 30 3.8 1.28 (1.4%)
Jul 19 100.00 0.75 93 0.8 6.28 (6.7%)
5% Yield On CNI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 95.00 1.15 30 3.8 1.28 (1.4%)
Jul 19 95.00 2.40 93 2.6 1.28 (1.4%)
10% Yield On CNI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 95.00 1.15 30 3.8 1.28 (1.4%)
Jul 19 95.00 2.40 93 2.6 1.28 (1.4%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For May 17 Expiration     Top 5 High Yield
1.COTY dividend 6.BAC dividend   1.I dividend
2.SPY dividend 7.QQQ dividend   2.SNAP dividend
3.EEM dividend 8.EWZ dividend   3.BCRX dividend
4.FXI dividend 9.XOP dividend   4.TWTR dividend
5.SPX dividend 10.XLF dividend   5.TSLA dividend

Want more examples? CNHX Dividend | CNK Dividend