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5 Stocks Offering Dividend Plays

CBS Chart CBS data by YCharts

CBS (CBS - Get Report)

CBS is a mass media company that creates and distributes industry-leading content to audiences worldwide. CBS trades an average of 5.7 million shares per day with a marketcap of $5 million.

Yield: 1.33%

Dividend Amount: 12 cents

Ex-Dividend Date: Sept. 6

Beta: 2.21

Strategy: CBS is in a strong bull trend. Take advantage of the cheap calls. Buying calls mitigates your risk, but with very little time premium you get over two weeks before ex-dividend and about 35 days before option expiration.

If you believe CBS will continue to move up, buy the $32 September calls for 15 cents above intrinsic value. CBS needs to increase in price an average of one cent per day to make the trade worthwhile.

Johnson Controls, Inc. (JCI - Get Report) JCI Chart JCI data by YCharts

Johnson Controls is a global market leader in automotive systems and facility management and control. The company was founded in 1885 and is headquartered in Milwaukee. Johnson trades an average of 5.7 million shares per day with a marketcap of $5 million.

Yield: 2.67%

Dividend Amount: 18 cents

Ex-Dividend Date: Sept. 5

Beta: 1.81

Strategy: Buy Johnson Controls stock and offer to sell the September $26.00 strike or lower call for 37 cents over the intrinsic value.

I will attempt to close out the trade with a gain of near 21 cents, plus dividend.

If my shares are called away before trading ex-dividend (resulting from the option buyer wanting the dividend), I gain about 37 cents. The most I can make is 55 cents if I hold the covered call through option expiration day and the stock gets called away.

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BBY $35.39 0.00%
CBS $62.72 0.00%
FTR $7.03 0.00%
JCI $52.48 0.00%
QCOM $68.24 0.00%


DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

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