SMG Dividend Type Payments

Although SMG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Scotts Miracle-Gro Company (The) to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 1:45 PM ET):

Scotts Miracle-Gro Company (The) (SMG)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
60.31	60.39	60.35	-0.05	526K	-	3.5B

SMG Dividend-Like Income Using Covered Calls

With SMG at 60.35, 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%	1.81	0.5
5%	3.02	0.8
10%	6.04	1.7

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 SMG Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 17	62.50	2.45	51	4.8	2.11 (3.5%)
Sep 19	62.50	6.50	206	3.2	2.11 (3.5%)

5% Yield On SMG Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 17	62.50	2.45	51	4.8	2.11 (3.5%)
Sep 19	62.50	6.50	206	3.2	2.11 (3.5%)

10% Yield On SMG Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 17	62.50	2.45	51	4.8	2.11 (3.5%)
Sep 19	62.50	6.50	206	3.2	2.11 (3.5%)

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