OTEX Dividend

Although OTEX has a dividend of 0.28 with an ex-dividend date of Mar 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 Fri 4:16 PM ET):

Open Text Corporation - Common Shares (OTEX)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
24.00	25.34	25.07	+2.28	4.4M	12	5.7B

OTEX Dividend-Like Income Using Covered Calls

With OTEX at 25.07, 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%	0.75	0.2
5%	1.25	0.3
10%	2.51	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 OTEX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Mar 20	27.50	0.30	43	0.7	2.16 (8.6%)
Aug 21	27.50	1.30	197	0.7	2.16 (8.6%)

5% Yield On OTEX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Mar 20	27.50	0.30	43	0.7	2.16 (8.6%)
Aug 21	27.50	1.30	197	0.7	2.16 (8.6%)

10% Yield On OTEX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Mar 20	27.50	0.30	43	0.7	2.16 (8.6%)

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Want more examples? OSW Dividend | OTIS Dividend