SEM Dividend

Select Medical Holdings Corporation dividend

Although SEM has a dividend of 0.13 with an ex-dividend date of Nov 13, you can sell covered calls on Select Medical Holdings Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 2:15 PM ET):

Select Medical Holdings Corporation (SEM)
Bid Ask Last Change Volume P/E Market Cap
39.15 39.18 39.15 -1.05 263K 19 5.2B

SEM Dividend-Like Income Using Covered Calls

With SEM at 39.15, 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% 1.17 0.3
5% 1.96 0.5
10% 3.92 1.1

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 SEM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 15 40.00 0.10 4 2.5 0.82 (2.1%)
Jun 20 40.00 1.70 221 0.8 0.82 (2.1%)
5% Yield On SEM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 15 40.00 0.10 4 2.5 0.82 (2.1%)
Jun 20 40.00 1.70 221 0.8 0.82 (2.1%)
10% Yield On SEM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 15 40.00 0.10 4 2.5 0.82 (2.1%)

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