CYTK Dividend Type Payments

CYTOKINETICS dividend

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

CYTOKINETICS (CYTK)
Bid Ask Last Change Volume P/E Market Cap
7.00 7.15 7.10 +0.05 218K - 0.4B

CYTK Dividend-Like Income Using Covered Calls

With CYTK at 7.10, 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% 0.21 0.1
5% 0.36 0.1
10% 0.71 0.2

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 CYTK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 9.00 0.15 93 0.2 1.85 (26.1%)
Feb 15 11.00 0.15 184 0.1 3.85 (54.2%)
5% Yield On CYTK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 9.00 0.15 93 0.2 1.85 (26.1%)
Feb 15 10.00 0.30 184 0.2 2.85 (40.1%)
10% Yield On CYTK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 8.00 0.25 93 0.3 0.85 (12.0%)
Feb 15 8.00 0.70 184 0.4 0.85 (12.0%)

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