SMRT Dividend Type Payments

SmartRent, Inc. Class A dividend

Although SMRT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SmartRent, Inc. Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

SmartRent, Inc. Class A (SMRT)
Bid Ask Last Change Volume P/E Market Cap
0.85 0.92 0.91 +0.01 1.3M - 0.2B

SMRT Dividend-Like Income Using Covered Calls

With SMRT at 0.91, 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% 0.03 0.0
5% 0.05 0.0
10% 0.09 0.0

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 SMRT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 1.00 0.05 108 0.0 0.08 (8.8%)
Dec 19 1.00 0.05 199 0.0 0.08 (8.8%)
5% Yield On SMRT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 1.00 0.05 108 0.0 0.08 (8.8%)
Dec 19 1.00 0.05 199 0.0 0.08 (8.8%)
10% Yield On SMRT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 1.00 0.05 108 0.0 0.08 (8.8%)
Dec 19 1.00 0.05 199 0.0 0.08 (8.8%)

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