C Dividend

Although C has a dividend of 0.56 with an ex-dividend date of Feb 3, you can sell covered calls on Citigroup, Inc. 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):

Citigroup, Inc. (C)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
80.01	80.10	79.99	+1.48	21.9M	22	149B

C Dividend-Like Income Using Covered Calls

With C at 79.99, 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%	2.40	0.7
5%	4.00	1.1
10%	8.00	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 C Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Feb 7	80.00	1.53	22	6.5	0.00 (0.0%)
Feb 14	80.00	1.76	29	5.7	0.00 (0.0%)

5% Yield On C Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Feb 7	80.00	1.53	22	6.5	0.00 (0.0%)
Feb 14	80.00	1.76	29	5.7	0.00 (0.0%)

10% Yield On C Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Feb 7	80.00	1.53	22	6.5	0.00 (0.0%)
Feb 14	80.00	1.76	29	5.7	0.00 (0.0%)

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Top 10 Open Interest For Feb 21 Expiration				Top 5 High Yield
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Want more examples? BZUN Dividend | CAAP Dividend