OTEX Dividend

Although OTEX has a dividend of 0.26 with an ex-dividend date of Nov 29, you can sell covered calls on Open Text Corporation - Common Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

Open Text Corporation - Common Shares (OTEX)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
27.57	29.61	28.25	-0.58	945K	17	7.7B

OTEX Dividend-Like Income Using Covered Calls

With OTEX at 28.25, 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%	0.85	0.2
5%	1.41	0.4
10%	2.83	0.8

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 OTEX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	30.00	0.20	33	0.6	0.39 (1.4%)
May 16	30.00	1.75	180	1.0	0.39 (1.4%)

5% Yield On OTEX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	30.00	0.20	33	0.6	0.39 (1.4%)
May 16	30.00	1.75	180	1.0	0.39 (1.4%)

10% Yield On OTEX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 16	30.00	1.75	180	1.0	0.39 (1.4%)
Feb 21	30.00	1.00	96	1.0	0.39 (1.4%)

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Want more examples? OSW Dividend | OTIS Dividend