OSBC Dividend
Although OSBC has a dividend of 0.07 with an ex-dividend date of Oct 31, you can sell covered calls on Old Second Bancorp, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 9:45 AM ET):
| Old Second Bancorp, Inc. (OSBC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 18.31 | 18.40 | 18.36 | +0.50 | 48K | 10 | 0.9B |
OSBC Dividend-Like Income Using Covered Calls
With OSBC at 18.36, 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% | 0.55 | 0.2 |
| 5% | 0.92 | 0.3 |
| 10% | 1.84 | 0.5 |
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:
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | TLT dividend | 1. | UUUU dividend | |
| 2. | KVUE dividend | 7. | HYG dividend | 2. | DNUT dividend | |
| 3. | NVDA dividend | 8. | EEM dividend | 3. | IREN dividend | |
| 4. | SLV dividend | 9. | QQQ dividend | 4. | CIFR dividend | |
| 5. | GLD dividend | 10. | INTC dividend | 5. | RGTI dividend | |
Want more examples? ORN Dividend | OSIS Dividend
