SHW Dividend
Although SHW has a dividend of 0.79 with an ex-dividend date of Aug 15, 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 Fri 4:16 PM ET):
| Sherwin-Williams Company (The) (SHW) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 342.50 | 346.47 | 343.41 | +12.53 | 4.1M | 33 | 83B |
SHW Dividend-Like Income Using Covered Calls
With SHW at 343.41, 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% | 10.30 | 2.8 |
| 5% | 17.17 | 4.7 |
| 10% | 34.34 | 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 | |
| Aug 15 | 350.00 | 2.30 | 15 | 15.3 | 3.53 (1.0%) | |
| Sep 19 | 350.00 | 6.70 | 50 | 13.4 | 3.53 (1.0%) | |
| 5% Yield On SHW Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 350.00 | 2.30 | 15 | 15.3 | 3.53 (1.0%) | |
| Sep 19 | 350.00 | 6.70 | 50 | 13.4 | 3.53 (1.0%) | |
| 10% Yield On SHW Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 350.00 | 2.30 | 15 | 15.3 | 3.53 (1.0%) | |
| Sep 19 | 350.00 | 6.70 | 50 | 13.4 | 3.53 (1.0%) | |
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| Top 10 Open Interest For Aug 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | IBIT dividend | 1. | UPST dividend | |
| 2. | NVDA dividend | 7. | TSLA dividend | 2. | PTON dividend | |
| 3. | GLD dividend | 8. | QQQ dividend | 3. | APPS dividend | |
| 4. | IWM dividend | 9. | AMZN dividend | 4. | QBTS dividend | |
| 5. | SPY dividend | 10. | AAPL dividend | 5. | LYFT dividend | |
Want more examples? SHV Dividend | SHY Dividend
