COO Dividend Type Payments

COOPER dividend

Although COO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on COOPER to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 3:30 PM ET):

COOPER (COO)
Bid Ask Last Change Volume P/E Market Cap
258.00 258.27 258.01 -6.27 140K 101 13B

COO Dividend-Like Income Using Covered Calls

With COO at 258.01, 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% 7.74 2.1
5% 12.90 3.5
10% 25.80 7.1

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 COO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 270.00 1.90 30 6.3 11.73 (4.5%)
Feb 15 280.00 4.20 121 3.5 21.73 (8.4%)
5% Yield On COO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 270.00 1.90 30 6.3 11.73 (4.5%)
Feb 15 270.00 8.30 121 6.9 11.73 (4.5%)
10% Yield On COO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 260.00 5.40 30 18.0 1.73 (0.7%)
Feb 15 260.00 12.40 121 10.2 1.73 (0.7%)

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