OTEX Dividend

Although OTEX has a dividend of 0.26 with an ex-dividend date of Jun 6, you can sell covered calls on Open Text Corporation - Common Shares 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):

Open Text Corporation - Common Shares (OTEX)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
27.05	28.60	27.87	-0.32	1.9M	12	7.3B

OTEX Dividend-Like Income Using Covered Calls

With OTEX at 27.87, here's a table showing how big the annual "dividend" (i.e. 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%	0.84	0.2
5%	1.39	0.4
10%	2.79	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 OTEX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	30.00	0.65	94	0.7	1.40 (5.0%)
Dec 19	30.00	1.45	220	0.7	1.40 (5.0%)

5% Yield On OTEX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	30.00	0.65	94	0.7	1.40 (5.0%)
Dec 19	30.00	1.45	220	0.7	1.40 (5.0%)

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Want more examples? OSW Dividend | OTIS Dividend