COWN Dividend Type Payments

COWEN INC CL A dividend

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

COWEN INC CL A (COWN)
Bid Ask Last Change Volume P/E Market Cap
16.11 17.00 16.08 -0.06 198K - 0.5B

COWN Dividend-Like Income Using Covered Calls

With COWN at 16.08, 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% 0.48 0.1
5% 0.80 0.2
10% 1.61 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 COWN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 17.50 0.15 26 0.6 0.50 (3.1%)
Dec 21 17.50 0.40 61 0.7 0.50 (3.1%)
5% Yield On COWN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 17.50 0.15 26 0.6 0.50 (3.1%)
Dec 21 17.50 0.40 61 0.7 0.50 (3.1%)
10% Yield On COWN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 17.50 0.15 26 0.6 0.50 (3.1%)
Dec 21 17.50 0.40 61 0.7 0.50 (3.1%)

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