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 12:05 PM ET):
Snap-On Incorporated (SNA) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
285.29 | 285.74 | 285.44 | +1.03 | 55K | 15 | 15B |
SNA Dividend-Like Income Using Covered Calls
With SNA at 285.44, 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% | 8.56 | 2.3 |
5% | 14.27 | 3.9 |
10% | 28.54 | 7.8 |
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 SNA Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 290.00 | 8.60 | 52 | 16.5 | 4.26 (1.5%) | |
Oct 18 | 290.00 | 4.60 | 24 | 19.2 | 4.26 (1.5%) |
5% Yield On SNA Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 290.00 | 8.60 | 52 | 16.5 | 4.26 (1.5%) | |
Oct 18 | 290.00 | 4.60 | 24 | 19.2 | 4.26 (1.5%) |
10% Yield On SNA Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 290.00 | 8.60 | 52 | 16.5 | 4.26 (1.5%) | |
Oct 18 | 290.00 | 4.60 | 24 | 19.2 | 4.26 (1.5%) |
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Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | HYG dividend | 1. | DJT dividend | |
2. | IWM dividend | 7. | EEM dividend | 2. | WVE dividend | |
3. | SPY dividend | 8. | FXI dividend | 3. | CPRI dividend | |
4. | SLV dividend | 9. | GLD dividend | 4. | CORZ dividend | |
5. | QQQ dividend | 10. | TLT dividend | 5. | CLSK dividend |
Want more examples? SN Dividend | SNAP Dividend