CHE Dividend Type Payments

Chemed Corp dividend

Although CHE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Chemed Corp 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):

Chemed Corp (CHE)
Bid Ask Last Change Volume P/E Market Cap
523.17 545.61 534.10 +3.99 87K 27 7.9B

CHE Dividend-Like Income Using Covered Calls

With CHE at 534.10, 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% 16.02 4.4
5% 26.71 7.3
10% 53.41 14.6

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 CHE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 20 550.00 22.50 158 14.2 4.39 (0.8%)
Feb 21 550.00 4.50 39 11.5 4.39 (0.8%)
5% Yield On CHE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 20 550.00 22.50 158 14.2 4.39 (0.8%)
Feb 21 550.00 4.50 39 11.5 4.39 (0.8%)
10% Yield On CHE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 21 550.00 10.30 67 15.4 4.39 (0.8%)

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