SQM Dividend Type Payments

Sociedad Quimica y Minera S.A. dividend

Although SQM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Sociedad Quimica y Minera S.A. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:00 PM ET):

Sociedad Quimica y Minera S.A. (SQM)
Bid Ask Last Change Volume P/E Market Cap
43.40 43.46 43.42 -0.05 310K 26 14B

SQM Dividend-Like Income Using Covered Calls

With SQM at 43.42, 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% 1.30 0.4
5% 2.17 0.6
10% 4.34 1.2

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 SQM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 45.00 1.55 32 4.8 1.54 (3.5%)
Sep 19 45.00 0.15 4 3.8 1.54 (3.5%)
5% Yield On SQM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 45.00 1.55 32 4.8 1.54 (3.5%)
Sep 19 45.00 0.15 4 3.8 1.54 (3.5%)
10% Yield On SQM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 45.00 1.55 32 4.8 1.54 (3.5%)
Sep 19 45.00 0.15 4 3.8 1.54 (3.5%)

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