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 Wed 4:16 PM ET):

Safe Bulkers, Inc ($0.001 par value) (SB)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
4.88	5.18	5.09	-0.04	463K	6.4	0.5B

SB Dividend-Like Income Using Covered Calls

With SB at 5.09, 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%	0.15	0.0
5%	0.25	0.1
10%	0.51	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 18	5.50	0.05	24	0.2	0.32 (6.3%)
Jan 17	5.50	0.20	115	0.2	0.32 (6.3%)

5% Yield On SB Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 18	5.50	0.05	24	0.2	0.32 (6.3%)
Jan 17	5.50	0.20	115	0.2	0.32 (6.3%)

10% Yield On SB Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 18	5.50	0.05	24	0.2	0.32 (6.3%)
Jan 17	5.50	0.20	115	0.2	0.32 (6.3%)

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Want more examples? SAVE Dividend | SBAC Dividend