SRE Dividend

DBA Sempra dividend

Although SRE has a dividend of 0.65 with an ex-dividend date of Mar 20, you can sell covered calls on DBA Sempra to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 10:55 AM ET):

DBA Sempra (SRE)
Bid Ask Last Change Volume P/E Market Cap
72.47 72.55 72.49 -0.36 2.2M 17 48B

SRE Dividend-Like Income Using Covered Calls

With SRE at 72.49, 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% 2.17 0.6
5% 3.62 1.0
10% 7.25 2.0

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 SRE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 75.00 1.35 50 2.7 2.45 (3.4%)
Oct 17 75.00 4.40 233 1.9 2.45 (3.4%)
5% Yield On SRE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 75.00 1.35 50 2.7 2.45 (3.4%)
Oct 17 75.00 4.40 233 1.9 2.45 (3.4%)
10% Yield On SRE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 75.00 1.35 50 2.7 2.45 (3.4%)
Jul 18 75.00 3.20 142 2.3 2.45 (3.4%)

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