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 Tue 4:16 PM ET):

Snap-On Incorporated (SNA)
Bid Ask Last Change Volume P/E Market Cap
293.80 324.02 307.28 -5.06 363K 16 16B

SNA Dividend-Like Income Using Covered Calls

With SNA at 307.28, 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% 9.22 2.5
5% 15.36 4.2
10% 30.73 8.4

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
Jul 18 330.00 0.90 32 2.8 5.98 (1.9%)
Sep 19 330.00 5.30 95 5.6 5.98 (1.9%)
5% Yield On SNA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 330.00 5.30 95 5.6 5.98 (1.9%)
Dec 19 330.00 10.20 186 5.5 5.98 (1.9%)

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Want more examples? SN Dividend | SNAP Dividend