CVLT Dividend Type Payments

Commvault Systems, Inc dividend

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

Commvault Systems, Inc (CVLT)
Bid Ask Last Change Volume P/E Market Cap
45.05 51.00 50.13 +0.59 454K 708 2.2B

CVLT Dividend-Like Income Using Covered Calls

With CVLT at 50.13, 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% 1.50 0.4
5% 2.51 0.7
10% 5.01 1.4

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 CVLT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 55.00 0.30 31 1.0 4.00 (8.0%)
Oct 18 57.50 0.55 94 0.6 6.50 (13.0%)
5% Yield On CVLT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 55.00 0.30 31 1.0 4.00 (8.0%)
Oct 18 55.00 1.00 94 1.1 4.00 (8.0%)
10% Yield On CVLT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 52.50 0.95 31 3.1 1.50 (3.0%)
Oct 18 52.50 1.60 94 1.7 1.50 (3.0%)

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