SB Dividend Type Payments
Although SB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Safe Bulkers, Inc ($0.001 par value) 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):
| Safe Bulkers, Inc ($0.001 par value) (SB) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 4.04 | 4.16 | 4.11 | +0.06 | 559K | 6.0 | 0.4B |
SB Dividend-Like Income Using Covered Calls
With SB at 4.11, 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% | 0.12 | 0.0 |
| 5% | 0.21 | 0.1 |
| 10% | 0.41 | 0.1 |
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 SB Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 5.00 | 0.05 | 99 | 0.1 | 0.84 (20.4%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | NFE dividend | |
| 2. | SLV dividend | 7. | AAPL dividend | 2. | APPS dividend | |
| 3. | SPY dividend | 8. | IBIT dividend | 3. | BRSL dividend | |
| 4. | TSLA dividend | 9. | TLT dividend | 4. | METC dividend | |
| 5. | IWM dividend | 10. | QQQ dividend | 5. | PROK dividend | |
Want more examples? SAVA Dividend | SBAC Dividend
