OXY Dividend

Although OXY has a dividend of 0.78 with an ex-dividend date of Sep 7, you can sell covered calls on OCCIDENTAL PETROLEUM to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

OCCIDENTAL PETROLEUM (OXY)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
76.95	80.00	79.01	+0.46	2.9M	27	60B

OXY Dividend-Like Income Using Covered Calls

With OXY at 79.01, 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%	2.37	0.6
5%	3.95	1.1
10%	7.90	2.2

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 OXY Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 24	81.00	0.06	5	1.2	1.00 (1.3%)
Aug 31	82.00	0.12	12	1.0	2.00 (2.5%)

5% Yield On OXY Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 24	81.00	0.06	5	1.2	1.00 (1.3%)
Aug 31	81.50	0.18	12	1.5	1.50 (1.9%)

10% Yield On OXY Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 24	80.50	0.13	5	2.6	0.50 (0.6%)
Aug 31	81.00	0.27	12	2.3	1.00 (1.3%)

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Top 10 Open Interest For Sep 21 Expiration				Top 5 High Yield
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3.	SPX dividend	8.	FB dividend	3.	UVXY dividend
4.	QQQ dividend	9.	IWM dividend	4.	AKRX dividend
5.	XLF dividend	10.	GDX dividend	5.	LB dividend

Want more examples? OXSQ Dividend | OZM Dividend