SNA Dividend Type Payments
Although SNA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Snap-On Incorporated to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 3:40 PM ET):
| Snap-On Incorporated (SNA) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 352.48 | 352.95 | 352.71 | -1.47 | 177K | 18 | 19B |
SNA Dividend-Like Income Using Covered Calls
With SNA at 352.71, 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% | 10.58 | 2.9 |
| 5% | 17.64 | 4.8 |
| 10% | 35.27 | 9.7 |
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 SNA Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 19 | 360.00 | 21.50 | 241 | 8.9 | 7.05 (2.0%) | |
| Jun 20 | 360.00 | 16.30 | 150 | 10.9 | 7.05 (2.0%) | |
| 5% Yield On SNA Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 19 | 360.00 | 21.50 | 241 | 8.9 | 7.05 (2.0%) | |
| Jun 20 | 360.00 | 16.30 | 150 | 10.9 | 7.05 (2.0%) | |
| 10% Yield On SNA Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jun 20 | 360.00 | 16.30 | 150 | 10.9 | 7.05 (2.0%) | |
| Feb 21 | 360.00 | 6.80 | 31 | 21.9 | 7.05 (2.0%) | |
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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. | SMCI 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. | MBLY dividend | |
Want more examples? SN Dividend | SNAP Dividend
