SHW Dividend Type Payments

Although SHW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Sherwin-Williams Company (The) 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):

Sherwin-Williams Company (The) (SHW)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
325.00	349.89	341.49	-2.20	1.6M	34	85B

SHW Dividend-Like Income Using Covered Calls

With SHW at 341.49, 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%	10.24	2.8
5%	17.07	4.7
10%	34.15	9.4

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 SHW Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	350.00	3.30	19	17.4	0.11 (0.0%)
Jan 16	350.00	6.50	47	13.8	0.11 (0.0%)

5% Yield On SHW Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	350.00	3.30	19	17.4	0.11 (0.0%)
Jan 16	350.00	6.50	47	13.8	0.11 (0.0%)

10% Yield On SHW Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	350.00	3.30	19	17.4	0.11 (0.0%)
Jan 16	350.00	6.50	47	13.8	0.11 (0.0%)

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