SSD Dividend Type Payments
Although SSD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Simpson Manufacturing Company, Inc. 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):
Simpson Manufacturing Company, Inc. (SSD) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
181.07 | 204.41 | 193.65 | +0.91 | 145K | 25 | 8.1B |
SSD Dividend-Like Income Using Covered Calls
With SSD at 193.65, 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% | 5.81 | 1.6 |
5% | 9.68 | 2.7 |
10% | 19.37 | 5.3 |
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 SSD Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 210.00 | 1.90 | 39 | 4.9 | 5.59 (2.9%) | |
Oct 18 | 210.00 | 0.20 | 11 | 1.8 | 5.59 (2.9%) |
5% Yield On SSD Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 210.00 | 1.90 | 39 | 4.9 | 5.59 (2.9%) | |
Dec 20 | 210.00 | 5.60 | 74 | 7.6 | 5.59 (2.9%) |
10% Yield On SSD Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Dec 20 | 210.00 | 5.60 | 74 | 7.6 | 5.59 (2.9%) | |
Mar 21 | 210.00 | 10.50 | 165 | 6.4 | 5.59 (2.9%) |
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Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | EEM dividend | 1. | ASTS dividend | |
2. | IWM dividend | 7. | SLV dividend | 2. | IREN dividend | |
3. | FXI dividend | 8. | SMCI dividend | 3. | APLD dividend | |
4. | SPY dividend | 9. | HYG dividend | 4. | HUM dividend | |
5. | QQQ dividend | 10. | TSLA dividend | 5. | SERV dividend |
Want more examples? SSB Dividend | SSG Dividend