SM Dividend

Although SM has a dividend of 0.20 with an ex-dividend date of Oct 17, you can sell covered calls on SM Energy Company 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):

SM Energy Company (SM)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
22.53	23.35	23.11	+0.51	2.9M	3.2	2.6B

SM Dividend-Like Income Using Covered Calls

With SM at 23.11, 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%	0.69	0.2
5%	1.16	0.3
10%	2.31	0.6

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 SM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	25.00	0.05	5	1.0	1.65 (7.1%)
Dec 19	25.00	1.35	68	2.0	1.65 (7.1%)

5% Yield On SM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	25.00	0.05	5	1.0	1.65 (7.1%)
Dec 19	25.00	1.35	68	2.0	1.65 (7.1%)

10% Yield On SM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	25.00	0.05	5	1.0	1.65 (7.1%)
Dec 19	25.00	1.35	68	2.0	1.65 (7.1%)

Want to increase dividends with covered calls? Sign Up For A Free Trial

Top 10 Open Interest For Oct 17 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	TSLA dividend	1.	ARCT dividend
2.	IBIT dividend	7.	INTC dividend	2.	NVTS dividend
3.	GLD dividend	8.	QQQ dividend	3.	HIVE dividend
4.	SPY dividend	9.	IWM dividend	4.	AAOI dividend
5.	SLV dividend	10.	AMZN dividend	5.	BTBT dividend

Want more examples? SLYV Dividend | SMA Dividend