CXW Dividend

CORECIVIC INC dividend

Although CXW has a dividend of 0.43 with an ex-dividend date of Sep 28, you can sell covered calls on CORECIVIC INC 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):

CORECIVIC INC (CXW)
Bid Ask Last Change Volume P/E Market Cap
24.77 25.76 25.27 +0.38 484K 18 3.0B

CXW Dividend-Like Income Using Covered Calls

With CXW at 25.27, 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% 0.76 0.2
5% 1.26 0.3
10% 2.53 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 CXW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 27.00 0.10 36 0.3 1.24 (4.9%)
Dec 21 28.00 0.40 127 0.3 2.24 (8.9%)
5% Yield On CXW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 26.00 0.40 36 1.1 0.24 (0.9%)
Dec 21 27.00 0.65 127 0.5 1.24 (4.9%)
10% Yield On CXW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 26.00 0.40 36 1.1 0.24 (0.9%)
Dec 21 26.00 1.00 127 0.8 0.24 (0.9%)

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