STE Dividend Type Payments
Although STE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on STERIS plc (Ireland) Ordinary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 12:10 PM ET):
STERIS plc (Ireland) Ordinary Shares (STE) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
225.29 | 225.81 | 225.57 | -1.58 | 79K | 56 | 22B |
STE Dividend-Like Income Using Covered Calls
With STE at 225.57, 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% | 6.77 | 1.9 |
5% | 11.28 | 3.1 |
10% | 22.56 | 6.2 |
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 STE Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 230.00 | 5.90 | 37 | 15.9 | 4.19 (1.9%) | |
Oct 18 | 230.00 | 0.40 | 9 | 4.4 | 4.19 (1.9%) |
5% Yield On STE Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 230.00 | 5.90 | 37 | 15.9 | 4.19 (1.9%) | |
Oct 18 | 230.00 | 0.40 | 9 | 4.4 | 4.19 (1.9%) |
10% Yield On STE Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 230.00 | 5.90 | 37 | 15.9 | 4.19 (1.9%) | |
Dec 20 | 230.00 | 7.90 | 72 | 11.0 | 4.19 (1.9%) |
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Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | EEM dividend | 1. | HUM dividend | |
2. | IWM dividend | 7. | SLV dividend | 2. | AEHR dividend | |
3. | FXI dividend | 8. | TSLA dividend | 3. | BYND dividend | |
4. | SPY dividend | 9. | HYG dividend | 4. | ZIM dividend | |
5. | QQQ dividend | 10. | SMCI dividend | 5. | ALT dividend |
Want more examples? STC Dividend | STEP Dividend