CBU Dividend
Although CBU has a dividend of 0.47 with an ex-dividend date of Dec 12, you can sell covered calls on Community Financial System, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 10:35 AM ET):
| Community Financial System, Inc. (CBU) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 55.96 | 56.20 | 56.08 | -0.26 | 14K | 15 | 3.0B |
CBU Dividend-Like Income Using Covered Calls
With CBU at 56.08, 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% | 1.68 | 0.5 |
| 5% | 2.80 | 0.8 |
| 10% | 5.61 | 1.5 |
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 CBU Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 15 | 60.00 | 1.00 | 205 | 0.5 | 3.80 (6.8%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | TLT dividend | 1. | INBX dividend | |
| 2. | KVUE dividend | 7. | HYG dividend | 2. | UUUU dividend | |
| 3. | NVDA dividend | 8. | EEM dividend | 3. | BITF dividend | |
| 4. | SLV dividend | 9. | QQQ dividend | 4. | CIFR dividend | |
| 5. | GLD dividend | 10. | INTC dividend | 5. | UPST dividend | |
Want more examples? CBT Dividend | CBZ Dividend
