STAG Dividend
Although STAG has a dividend of 0.12 with an ex-dividend date of Dec 31, you can sell covered calls on Stag Industrial, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| Stag Industrial, Inc. (STAG) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 37.11 | 37.92 | 37.49 | +0.32 | 2.4M | 29 | 6.9B |
STAG Dividend-Like Income Using Covered Calls
With STAG at 37.49, 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% | 1.12 | 0.3 |
| 5% | 1.87 | 0.5 |
| 10% | 3.75 | 1.0 |
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 STAG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 20 | 40.00 | 0.35 | 94 | 0.4 | 2.08 (5.5%) | |
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| Top 10 Open Interest For Dec 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | OMER dividend | |
| 2. | SPY dividend | 7. | NFLX dividend | 2. | TMC dividend | |
| 3. | IBIT dividend | 8. | SLV dividend | 3. | TLRY dividend | |
| 4. | QQQ dividend | 9. | XLF dividend | 4. | BMNR dividend | |
| 5. | TLT dividend | 10. | AMZN dividend | 5. | ALT dividend | |
Want more examples? STAA Dividend | STBA Dividend
