SIGI Dividend

Although SIGI has a dividend of 0.38 with an ex-dividend date of Aug 15, you can sell covered calls on Selective Insurance Group, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 11:20 AM ET):

Selective Insurance Group, Inc. (SIGI)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
77.74	77.89	77.81	-0.34	46K	13	4.8B

SIGI Dividend-Like Income Using Covered Calls

With SIGI at 77.81, 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%	2.33	0.6
5%	3.89	1.1
10%	7.78	2.1

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 SIGI Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	80.00	0.05	5	1.0	2.11 (2.7%)
Dec 19	80.00	1.60	131	1.2	2.11 (2.7%)

5% Yield On SIGI Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	80.00	1.60	131	1.2	2.11 (2.7%)
Mar 20	80.00	3.10	222	1.4	2.11 (2.7%)

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Want more examples? SIGA Dividend | SII Dividend