ZTS Dividend Type Payments

Zoetis Inc. Class A dividend

Although ZTS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Zoetis Inc. Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

Zoetis Inc. Class A (ZTS)
Bid Ask Last Change Volume P/E Market Cap
174.00 177.00 175.14 +0.51 3.4M 33 79B

ZTS Dividend-Like Income Using Covered Calls

With ZTS at 175.14, 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% 5.25 1.4
5% 8.76 2.4
10% 17.51 4.8

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 ZTS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 180.00 2.90 36 8.1 3.00 (1.7%)
Jan 17 180.00 4.80 64 7.5 3.00 (1.7%)
5% Yield On ZTS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 180.00 2.90 36 8.1 3.00 (1.7%)
Jan 17 180.00 4.80 64 7.5 3.00 (1.7%)
10% Yield On ZTS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 180.00 2.90 36 8.1 3.00 (1.7%)
Jan 17 180.00 4.80 64 7.5 3.00 (1.7%)

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Want more examples? ZTO Dividend | ZUMZ Dividend