COT Dividend Type Payments

COTT dividend

Although COT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on COTT to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 12:40 PM ET):

COTT (COT)
Bid Ask Last Change Volume P/E Market Cap
14.88 14.89 14.88 -0.28 188K 4.9 2.2B

COT Dividend-Like Income Using Covered Calls

With COT at 14.88, 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% 0.45 0.1
5% 0.74 0.2
10% 1.49 0.4

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 COT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 15.00 0.50 30 1.7 0.11 (0.7%)
Feb 15 17.50 0.20 121 0.2 2.61 (17.5%)
5% Yield On COT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 15.00 0.50 30 1.7 0.11 (0.7%)
Feb 15 15.00 0.90 121 0.7 0.11 (0.7%)
10% Yield On COT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 15.00 0.50 30 1.7 0.11 (0.7%)
Feb 15 15.00 0.90 121 0.7 0.11 (0.7%)

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

 
Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.PBR dividend   1.CLVS dividend
2.SPX dividend 7.MU dividend   2.LLNW dividend
3.QQQ dividend 8.IWM dividend   3.CLF dividend
4.EEM dividend 9.FXI dividend   4.UVXY dividend
5.BAC dividend 10.AMD dividend   5.PYPL dividend

Want more examples? COST Dividend | COTY Dividend