SPNS Dividend Type Payments
Although SPNS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Sapiens International Corporation N.V. - Common Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| Sapiens International Corporation N.V. - Common Shares (SPNS) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 26.05 |
30.00 |
28.17 |
+0.85 |
140K |
22 |
1.5B |
SPNS Dividend-Like Income Using Covered Calls
With SPNS at 28.17, 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% |
0.85 |
0.2 |
| 5% |
1.41 |
0.4 |
| 10% |
2.82 |
0.8 |
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 SPNS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
30.00 |
0.50 |
15 |
3.3 |
0.00 (0.0%) |
| Oct 17 |
30.00 |
0.55 |
169 |
0.3 |
0.00 (0.0%) |
| 5% Yield On SPNS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
30.00 |
0.50 |
15 |
3.3 |
0.00 (0.0%) |
| Jul 18 |
30.00 |
0.40 |
78 |
0.5 |
0.00 (0.0%) |
| 10% Yield On SPNS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
30.00 |
0.50 |
15 |
3.3 |
0.00 (0.0%) |
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