CHDN Dividend Type Payments
Although CHDN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Churchill Downs, Incorporated to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| Churchill Downs, Incorporated (CHDN) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 51.56 | 148.88 | 128.95 | +0.75 | 283K | 23 | 9.4B |
CHDN Dividend-Like Income Using Covered Calls
With CHDN at 128.95, 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% | 3.87 | 1.1 |
| 5% | 6.45 | 1.8 |
| 10% | 12.90 | 3.5 |
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 CHDN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 150.00 | 5.90 | 340 | 1.7 | 1.12 (0.9%) | |
| Jun 20 | 150.00 | 2.40 | 158 | 1.5 | 1.12 (0.9%) | |
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| Top 10 Open Interest For Jan 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | IONQ dividend | |
| 2. | SLV dividend | 7. | INTC dividend | 2. | APLD dividend | |
| 3. | AAPL dividend | 8. | XLF dividend | 3. | NTLA dividend | |
| 4. | SPY dividend | 9. | TLT dividend | 4. | SERV dividend | |
| 5. | EEM dividend | 10. | IWM dividend | 5. | JOBY dividend | |
Want more examples? CHD Dividend | CHE Dividend
