SFD Dividend
Although SFD has a dividend of 0.25 with an ex-dividend date of Nov 13, you can sell covered calls on Smithfield Foods, Inc. 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):
| Smithfield Foods, Inc. (SFD) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 21.60 | 22.98 | 21.97 | +0.13 | 866K | - | 8.6B |
SFD Dividend-Like Income Using Covered Calls
With SFD at 21.97, 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% | 0.66 | 0.2 |
| 5% | 1.10 | 0.3 |
| 10% | 2.20 | 0.6 |
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. | CRCL dividend | |
| 2. | NVDA dividend | 7. | ASST dividend | 2. | WULF dividend | |
| 3. | KVUE dividend | 8. | SPY dividend | 3. | BE dividend | |
| 4. | SLV dividend | 9. | INTC dividend | 4. | SERV dividend | |
| 5. | GLD dividend | 10. | HYG dividend | 5. | OKLO dividend | |
Want more examples? SFBS Dividend | SFIX Dividend
