SMP Dividend Type Payments

Standard Motor Products, Inc. dividend

Although SMP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Standard Motor Products, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 10:15 AM ET):

Standard Motor Products, Inc. (SMP)
Bid Ask Last Change Volume P/E Market Cap
29.10 29.32 29.23 +0.59 14K 18 0.6B

SMP Dividend-Like Income Using Covered Calls

With SMP at 29.23, 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% 0.88 0.2
5% 1.46 0.4
10% 2.92 0.8

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:

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Top 10 Open Interest For Mar 21 Expiration     Top 5 High Yield
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5.EEM dividend 10.SLV dividend   5.TGTX dividend

Want more examples? SMOG Dividend | SMPL Dividend