OTEX Dividend Type Payments
Although OTEX has no upcoming (meaning, Board-approved and announced) dividends, 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 |
38.60 | 41.20 | 38.81 | -0.57 | 573K | 84 | 11B |
OTEX Dividend-Like Income Using Covered Calls
With OTEX at 38.81, 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% | 1.16 | 0.3 |
5% | 1.94 | 0.5 |
10% | 3.88 | 1.1 |
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 16 | 45.00 | 0.80 | 143 | 0.6 | 3.80 (9.8%) | |
Nov 15 | 45.00 | 1.50 | 234 | 0.6 | 3.80 (9.8%) |
5% Yield On OTEX Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 16 | 45.00 | 0.80 | 143 | 0.6 | 3.80 (9.8%) | |
Nov 15 | 45.00 | 1.50 | 234 | 0.6 | 3.80 (9.8%) |
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Top 10 Open Interest For Apr 19 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | TLT dividend | 1. | MRNS dividend | |
2. | SPY dividend | 7. | HYG dividend | 2. | SOUN dividend | |
3. | QQQ dividend | 8. | AAPL dividend | 3. | DWAC dividend | |
4. | SLV dividend | 9. | EEM dividend | 4. | HUT dividend | |
5. | FXI dividend | 10. | TSLA dividend | 5. | NOVA dividend |
Want more examples? OSW Dividend | OTIS Dividend