CNI Dividend

CANADIAN NATIONAL RAILWAY dividend

Although CNI has a dividend of 0.35 with an ex-dividend date of Sep 6, you can sell covered calls on CANADIAN NATIONAL RAILWAY to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

CANADIAN NATIONAL RAILWAY (CNI)
Bid Ask Last Change Volume P/E Market Cap
82.15 90.00 87.91 -0.07 659K 15 65B

CNI Dividend-Like Income Using Covered Calls

With CNI at 87.91, 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% 2.64 0.7
5% 4.40 1.2
10% 8.79 2.4

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 CNI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 90.00 0.05 5 1.0 0.00 (0.0%)
Sep 21 90.00 0.90 40 2.3 0.00 (0.0%)
5% Yield On CNI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 90.00 0.90 40 2.3 0.00 (0.0%)
Oct 19 90.00 1.55 68 2.3 0.00 (0.0%)

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

 
Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.BAC dividend   1.SSTK dividend
2.EEM dividend 7.AABA dividend   2.UVXY dividend
3.QQQ dividend 8.FXI dividend   3.VIPS dividend
4.SPX dividend 9.GLD dividend   4.HUYA dividend
5.XLF dividend 10.FB dividend   5.SWCH dividend

Want more examples? CNHX Dividend | CNK Dividend