CPS Dividend Type Payments

Cooper-Standard Holdings Inc. dividend

Although CPS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Cooper-Standard Holdings Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 11:25 AM ET):

Cooper-Standard Holdings Inc. (CPS)
Bid Ask Last Change Volume P/E Market Cap
14.69 14.77 14.77 +0.14 23K - 0.3B

CPS Dividend-Like Income Using Covered Calls

With CPS at 14.77, 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% 0.44 0.1
5% 0.74 0.2
10% 1.48 0.4

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 CPS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 15.00 0.90 33 2.7 0.23 (1.6%)
Jan 17 15.00 1.20 61 2.0 0.23 (1.6%)
5% Yield On CPS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 15.00 0.90 33 2.7 0.23 (1.6%)
Jan 17 15.00 1.20 61 2.0 0.23 (1.6%)
10% Yield On CPS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 15.00 0.90 33 2.7 0.23 (1.6%)
Jan 17 15.00 1.20 61 2.0 0.23 (1.6%)

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