SLRC Dividend Type Payments
Although SLRC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SLR Investment Corp. - Closed End Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| SLR Investment Corp. - Closed End Fund (SLRC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 15.05 | 15.14 | 15.10 | -0.31 | 230K | 9.3 | 0.8B |
SLRC Dividend-Like Income Using Covered Calls
With SLRC at 15.10, 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% | 0.45 | 0.1 |
| 5% | 0.76 | 0.2 |
| 10% | 1.51 | 0.4 |
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:
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| Top 10 Open Interest For Jan 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | AAPL dividend | 1. | TNGX dividend | |
| 2. | INTC dividend | 7. | SPY dividend | 2. | IMRX dividend | |
| 3. | IBIT dividend | 8. | GLD dividend | 3. | ERAS dividend | |
| 4. | TLT dividend | 9. | NIO dividend | 4. | DAWN dividend | |
| 5. | SLV dividend | 10. | NFLX dividend | 5. | SNDK dividend | |
Want more examples? SLQT Dividend | SLS Dividend
