CRAI Dividend

CRA INTL dividend

Although CRAI has a dividend of 0.17 with an ex-dividend date of Aug 27, you can sell covered calls on CRA INTL to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

CRA INTL (CRAI)
Bid Ask Last Change Volume P/E Market Cap
53.51 55.98 55.98 +0.41 66K 36 0.4B

CRAI Dividend-Like Income Using Covered Calls

With CRAI at 55.98, 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% 1.68 0.5
5% 2.80 0.8
10% 5.60 1.5

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 CRAI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 60.00 1.15 93 1.2 4.02 (7.2%)
Feb 15 60.00 2.50 184 1.4 4.02 (7.2%)
5% Yield On CRAI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 60.00 1.15 93 1.2 4.02 (7.2%)
Feb 15 60.00 2.50 184 1.4 4.02 (7.2%)

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