COP Dividend Type Payments

ConocoPhillips dividend

Although COP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ConocoPhillips to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

ConocoPhillips (COP)
Bid Ask Last Change Volume P/E Market Cap
62.10 62.20 62.10 -0.47 4.6M 10 71B

COP Dividend-Like Income Using Covered Calls

With COP at 62.10, 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% 1.86 0.5
5% 3.11 0.9
10% 6.21 1.7

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 COP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 24 65.50 0.07 8 0.9 3.30 (5.3%)
May 31 66.00 0.12 15 0.8 3.80 (6.1%)
5% Yield On COP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 24 65.50 0.07 8 0.9 3.30 (5.3%)
May 31 65.00 0.24 15 1.6 2.80 (4.5%)
10% Yield On COP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 24 64.50 0.16 8 2.0 2.30 (3.7%)
May 31 64.00 0.44 15 2.9 1.80 (2.9%)

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Want more examples? COO Dividend | COPX Dividend