COWB Dividend Type Payments

Although COWB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on IPATH SER B BLOOMBERG LIVESTOCK SUBINDEX TOTAL RETURN 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):

IPATH SER B BLOOMBERG LIVESTOCK SUBINDEX TOTAL RETURN (COWB)
Bid Ask Last Change Volume P/E Market Cap
46.51 49.16 47.78 +1.33 1K - 0.0B

COWB Dividend-Like Income Using Covered Calls

With COWB at 47.78, 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% 1.43 0.4
5% 2.39 0.7
10% 4.78 1.3

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 COWB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 51.00 0.60 64 0.9 1.84 (3.9%)
Jan 18 49.00 2.00 155 1.2 0.00 (0.0%)
5% Yield On COWB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 51.00 0.60 64 0.9 1.84 (3.9%)
Jan 18 49.00 2.00 155 1.2 0.00 (0.0%)
10% Yield On COWB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 49.00 1.15 64 1.5 0.00 (0.0%)

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Want more examples? COUP Dividend | COWN Dividend