SMCI Dividend Type Payments
Although SMCI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Super Micro Computer, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 12:55 PM ET):
| Super Micro Computer, Inc. (SMCI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 33.68 | 33.71 | 33.70 | +1.25 | 33.0M | 18 | 19B |
SMCI Dividend-Like Income Using Covered Calls
With SMCI at 33.70, 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% | 1.01 | 0.3 |
| 5% | 1.69 | 0.5 |
| 10% | 3.37 | 0.9 |
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 SMCI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 7 | 34.00 | 3.25 | 17 | 19.1 | 0.29 (0.9%) | |
| Feb 14 | 34.00 | 3.80 | 24 | 15.8 | 0.29 (0.9%) | |
| 5% Yield On SMCI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 7 | 34.00 | 3.25 | 17 | 19.1 | 0.29 (0.9%) | |
| Feb 14 | 34.00 | 3.80 | 24 | 15.8 | 0.29 (0.9%) | |
| 10% Yield On SMCI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 7 | 34.00 | 3.25 | 17 | 19.1 | 0.29 (0.9%) | |
| Feb 14 | 34.00 | 3.80 | 24 | 15.8 | 0.29 (0.9%) | |
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| Top 10 Open Interest For Feb 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | QUBT dividend | |
| 2. | TLT dividend | 7. | TSLA dividend | 2. | RGTI dividend | |
| 3. | SPY dividend | 8. | AMZN dividend | 3. | IONQ dividend | |
| 4. | IWM dividend | 9. | AAPL dividend | 4. | SNAP dividend | |
| 5. | FXI dividend | 10. | ASHR dividend | 5. | SMCI dividend | |
Want more examples? SMC Dividend | SMDD Dividend
