SHW Dividend

Although SHW has a dividend of 0.79 with an ex-dividend date of Nov 14, 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
338.00	360.00	345.64	+0.70	2.3M	34	86B

SHW Dividend-Like Income Using Covered Calls

With SHW at 345.64, 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%	10.37	2.8
5%	17.28	4.7
10%	34.56	9.5

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	360.00	3.30	47	7.0	0.00 (0.0%)
Nov 21	360.00	1.10	19	5.8	0.00 (0.0%)

5% Yield On SHW Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	360.00	3.30	47	7.0	0.00 (0.0%)
Nov 21	360.00	1.10	19	5.8	0.00 (0.0%)

10% Yield On SHW Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Mar 20	360.00	14.20	138	10.3	0.00 (0.0%)

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Want more examples? SHV Dividend | SHY Dividend