CNQ Dividend Type Payments

Canadian Natural Resources Ltd dividend

Although CNQ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Canadian Natural Resources Ltd to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 2:30 PM ET):

Canadian Natural Resources Ltd (CNQ)
Bid Ask Last Change Volume P/E Market Cap
27.05 27.06 27.06 -0.15 1.2M 18 33B

CNQ Dividend-Like Income Using Covered Calls

With CNQ at 27.06, 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% 0.81 0.2
5% 1.35 0.4
10% 2.71 0.7

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 CNQ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 27.00 0.35 3 9.7 0.00 (0.0%)
Jul 19 30.00 0.10 31 0.3 2.94 (10.9%)
5% Yield On CNQ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 27.00 0.35 3 9.7 0.00 (0.0%)
Jul 19 29.00 0.25 31 0.8 1.94 (7.2%)
10% Yield On CNQ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 27.00 0.35 3 9.7 0.00 (0.0%)
Jul 19 29.00 0.25 31 0.8 1.94 (7.2%)

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Want more examples? CNP Dividend | CNS Dividend