CTS Dividend Type Payments

CTS Corp dividend

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

CTS Corp (CTS)
Bid Ask Last Change Volume P/E Market Cap
28.39 28.40 28.39 +0.23 119K 20 0.9B

CTS Dividend-Like Income Using Covered Calls

With CTS at 28.39, 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% 0.85 0.2
5% 1.42 0.4
10% 2.84 0.8

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 CTS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 30.00 0.25 29 0.9 1.60 (5.6%)
Oct 18 30.00 0.65 92 0.7 1.60 (5.6%)
5% Yield On CTS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 30.00 0.25 29 0.9 1.60 (5.6%)
Oct 18 30.00 0.65 92 0.7 1.60 (5.6%)
10% Yield On CTS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 30.00 0.25 29 0.9 1.60 (5.6%)
Jan 17 30.00 1.50 183 0.8 1.60 (5.6%)

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Top 10 Open Interest For Aug 16 Expiration     Top 5 High Yield
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