ZTS Dividend

Zoetis Inc. Class A dividend

Although ZTS has a dividend of 0.50 with an ex-dividend date of Apr 21, 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 Wed 4:16 PM ET):

Zoetis Inc. Class A (ZTS)
Bid Ask Last Change Volume P/E Market Cap
158.94 167.00 164.99 -3.54 2.6M 31 76B

ZTS Dividend-Like Income Using Covered Calls

With ZTS at 164.99, 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% 4.95 1.4
5% 8.25 2.3
10% 16.50 4.5

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 ZTS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 170.00 3.90 51 7.6 3.00 (1.8%)
Oct 17 170.00 12.20 234 5.2 3.00 (1.8%)
5% Yield On ZTS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 170.00 3.90 51 7.6 3.00 (1.8%)
Oct 17 170.00 12.20 234 5.2 3.00 (1.8%)
10% Yield On ZTS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 170.00 3.90 51 7.6 3.00 (1.8%)
Oct 17 170.00 12.20 234 5.2 3.00 (1.8%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For Mar 21 Expiration     Top 5 High Yield
1.NVDA dividend 6.KWEB dividend   1.SOUN dividend
2.SPY dividend 7.INTC dividend   2.SRPT dividend
3.FXI dividend 8.QQQ dividend   3.BBAI dividend
4.EEM dividend 9.TLT dividend   4.LUNR dividend
5.IWM dividend 10.SLV dividend   5.QBTS dividend

Want more examples? ZTO Dividend | ZUMZ Dividend