CTRN Dividend Type Payments

CITI TRENDS dividend

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

CITI TRENDS (CTRN)
Bid Ask Last Change Volume P/E Market Cap
26.60 26.60 26.60 +0.67 55K 17 0.3B

CTRN Dividend-Like Income Using Covered Calls

With CTRN at 26.60, 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% 0.80 0.2
5% 1.33 0.4
10% 2.66 0.7

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 CTRN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 15 30.00 1.00 117 0.9 3.40 (12.8%)
May 17 35.00 0.60 208 0.3 8.40 (31.6%)
5% Yield On CTRN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 15 30.00 1.00 117 0.9 3.40 (12.8%)
May 17 30.00 1.75 208 0.8 3.40 (12.8%)
10% Yield On CTRN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 15 30.00 1.00 117 0.9 3.40 (12.8%)
May 17 30.00 1.75 208 0.8 3.40 (12.8%)

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