SMG Dividend

Although SMG has a dividend of 0.66 with an ex-dividend date of Feb 20, 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 Fri 4:16 PM ET):

Scotts Miracle-Gro Company (The) (SMG)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
63.00	65.54	64.22	-1.20	1.3M	27	3.8B

SMG Dividend-Like Income Using Covered Calls

With SMG at 64.22, 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%	1.93	0.5
5%	3.21	0.9
10%	6.42	1.8

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
Jun 18	67.50	4.00	140	2.9	1.96 (3.1%)
Sep 18	67.50	5.70	232	2.5	1.96 (3.1%)

5% Yield On SMG Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jun 18	67.50	4.00	140	2.9	1.96 (3.1%)
Sep 18	67.50	5.70	232	2.5	1.96 (3.1%)

10% Yield On SMG Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jun 18	67.50	4.00	140	2.9	1.96 (3.1%)
Sep 18	67.50	5.70	232	2.5	1.96 (3.1%)

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Top 10 Open Interest For Feb 20 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	QQQ dividend	1.	BE dividend
2.	SLV dividend	7.	EWZ dividend	2.	OCUL dividend
3.	KWEB dividend	8.	CORZ dividend	3.	SMCI dividend
4.	GLD dividend	9.	INTC dividend	4.	WDC dividend
5.	IBIT dividend	10.	SPY dividend	5.	IREN dividend

Want more examples? SMFG Dividend | SMH Dividend