SCM Dividend
Although SCM has a dividend of 0.13 with an ex-dividend date of Dec 31, you can sell covered calls on Stellus Capital Investment Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| Stellus Capital Investment Corporation (SCM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 12.50 | 12.95 | 12.59 | +0.01 | 149K | 12 | 0.4B |
SCM Dividend-Like Income Using Covered Calls
With SCM at 12.59, 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% | 0.38 | 0.1 |
| 5% | 0.63 | 0.2 |
| 10% | 1.26 | 0.3 |
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 Jan 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | AAPL dividend | 1. | OMER dividend | |
| 2. | INTC dividend | 7. | NIO dividend | 2. | DAWN dividend | |
| 3. | TLT dividend | 8. | GLD dividend | 3. | EOSE dividend | |
| 4. | IBIT dividend | 9. | NFLX dividend | 4. | PGR dividend | |
| 5. | SLV dividend | 10. | ASST dividend | 5. | IONQ dividend | |
Want more examples? SCL Dividend | SCO Dividend
