CTAS Dividend Type Payments

CINTAS dividend

Although CTAS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on CINTAS 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):

CINTAS (CTAS)
Bid Ask Last Change Volume P/E Market Cap
98.07 182.57 178.66 0.00 559K 23 19B

CTAS Dividend-Like Income Using Covered Calls

With CTAS at 178.66, 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% 5.36 1.5
5% 8.93 2.4
10% 17.87 4.9

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 CTAS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 190.00 0.60 26 2.3 7.43 (4.2%)
Dec 21 195.00 1.10 61 1.8 12.43 (7.0%)
5% Yield On CTAS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 185.00 1.50 26 5.8 2.43 (1.4%)
Dec 21 190.00 2.05 61 3.4 7.43 (4.2%)
10% Yield On CTAS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 185.00 1.50 26 5.8 2.43 (1.4%)
Dec 21 185.00 3.30 61 5.4 2.43 (1.4%)

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Want more examples? CSX Dividend | CTB Dividend