SSSS Dividend Type Payments
Although SSSS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SuRo Capital Corp. - Closed End Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 9:45 AM ET):
| SuRo Capital Corp. - Closed End Fund (SSSS) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 8.07 |
8.18 |
8.15 |
-0.08 |
12K |
- |
0.2B |
SSSS Dividend-Like Income Using Covered Calls
With SSSS at 8.15, 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% |
0.24 |
0.1 |
| 5% |
0.41 |
0.1 |
| 10% |
0.82 |
0.2 |
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 SSSS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
10.00 |
0.20 |
75 |
0.3 |
1.82 (22.3%) |
| Dec 19 |
10.00 |
0.65 |
166 |
0.4 |
1.82 (22.3%) |
| 5% Yield On SSSS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
10.00 |
0.20 |
75 |
0.3 |
1.82 (22.3%) |
| Dec 19 |
10.00 |
0.65 |
166 |
0.4 |
1.82 (22.3%) |
| 10% Yield On SSSS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
10.00 |
0.20 |
75 |
0.3 |
1.82 (22.3%) |
| Dec 19 |
10.00 |
0.65 |
166 |
0.4 |
1.82 (22.3%) |
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