SIMO Dividend Type Payments
Although SIMO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Silicon Motion Technology Corporation - American Depositary Shares, each 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):
| Silicon Motion Technology Corporation - American Depositary Shares, each (SIMO) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 73.20 | 78.00 | 75.04 | -1.34 | 182K | 112 | 2.3B |
SIMO Dividend-Like Income Using Covered Calls
With SIMO at 75.04, 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% | 2.25 | 0.6 |
| 5% | 3.75 | 1.0 |
| 10% | 7.50 | 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 SIMO Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 85.00 | 0.05 | 5 | 1.0 | 7.00 (9.3%) | |
| Sep 19 | 80.00 | 1.40 | 40 | 3.5 | 2.00 (2.7%) | |
| 5% Yield On SIMO Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 19 | 80.00 | 1.40 | 40 | 3.5 | 2.00 (2.7%) | |
| Dec 19 | 80.00 | 4.00 | 131 | 3.1 | 2.00 (2.7%) | |
| 10% Yield On SIMO Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 19 | 80.00 | 1.40 | 40 | 3.5 | 2.00 (2.7%) | |
| Dec 19 | 80.00 | 4.00 | 131 | 3.1 | 2.00 (2.7%) | |
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| Top 10 Open Interest For Aug 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | MBX dividend | |
| 2. | SLV dividend | 7. | GLD dividend | 2. | FLNC dividend | |
| 3. | SPY dividend | 8. | AMZN dividend | 3. | CRML dividend | |
| 4. | IWM dividend | 9. | INTC dividend | 4. | AAP dividend | |
| 5. | IBIT dividend | 10. | QQQ dividend | 5. | ASTS dividend | |
Want more examples? SILJ Dividend | SIMS Dividend
