STNE Dividend Type Payments
Although STNE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on StoneCo Ltd. - Class A Common Share to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| StoneCo Ltd. - Class A Common Share (STNE) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 15.00 |
15.19 |
15.17 |
-0.30 |
3.2M |
- |
4.9B |
STNE Dividend-Like Income Using Covered Calls
With STNE at 15.17, 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% |
0.46 |
0.1 |
| 5% |
0.76 |
0.2 |
| 10% |
1.52 |
0.4 |
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 STNE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 1 |
15.50 |
0.35 |
19 |
1.8 |
0.31 (2.0%) |
| Aug 8 |
15.50 |
0.70 |
26 |
2.7 |
0.31 (2.0%) |
| 5% Yield On STNE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 1 |
15.50 |
0.35 |
19 |
1.8 |
0.31 (2.0%) |
| Aug 8 |
15.50 |
0.70 |
26 |
2.7 |
0.31 (2.0%) |
| 10% Yield On STNE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 1 |
15.50 |
0.35 |
19 |
1.8 |
0.31 (2.0%) |
| Aug 8 |
15.50 |
0.70 |
26 |
2.7 |
0.31 (2.0%) |
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