CTRN Dividend

Citi Trends, Inc dividend

Although CTRN has a dividend of 0.08 with an ex-dividend date of Mar 4, you can sell covered calls on Citi Trends, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 9:50 AM ET):

Citi Trends, Inc (CTRN)
Bid Ask Last Change Volume P/E Market Cap
20.78 20.95 20.86 +0.14 1K 15 0.3B

CTRN Dividend-Like Income Using Covered Calls

With CTRN at 20.86, 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% 0.63 0.2
5% 1.04 0.3
10% 2.09 0.6

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
Mar 15 22.50 0.25 24 1.0 1.55 (7.4%)
Apr 18 25.00 0.20 58 0.3 4.05 (19.4%)
5% Yield On CTRN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 22.50 0.25 24 1.0 1.55 (7.4%)
Apr 18 25.00 0.20 58 0.3 4.05 (19.4%)
10% Yield On CTRN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 22.50 0.25 24 1.0 1.55 (7.4%)
Apr 18 22.50 0.60 58 1.0 1.55 (7.4%)

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Want more examples? CTRL Dividend | CTRP Dividend