SNA Dividend Type Payments

Snap-On Incorporated dividend

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 Mon 4:16 PM ET):

Snap-On Incorporated (SNA)
Bid Ask Last Change Volume P/E Market Cap
317.05 335.95 333.02 -2.88 392K 18 18B

SNA Dividend-Like Income Using Covered Calls

With SNA at 333.02, 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% 9.99 2.7
5% 16.65 4.6
10% 33.30 9.1

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
Dec 19 340.00 3.30 26 12.7 4.05 (1.2%)
May 15 340.00 19.00 173 11.0 4.05 (1.2%)
5% Yield On SNA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 340.00 3.30 26 12.7 4.05 (1.2%)
May 15 340.00 19.00 173 11.0 4.05 (1.2%)
10% Yield On SNA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 340.00 3.30 26 12.7 4.05 (1.2%)
May 15 340.00 19.00 173 11.0 4.05 (1.2%)

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Want more examples? SN Dividend | SNAP Dividend