CSWC Dividend
Although CSWC has a dividend of 0.36 with an ex-dividend date of Dec 13, you can sell covered calls on Capital Southwest Corp 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):
| Capital Southwest Corp (CSWC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 20.60 | 21.01 | 20.92 | +0.02 | 80K | - | 0.0B |
CSWC Dividend-Like Income Using Covered Calls
With CSWC at 20.92, here's a table showing how big the annual "dividend" (ie. 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% | 0.63 | 0.2 |
| 5% | 1.05 | 0.3 |
| 10% | 2.09 | 0.6 |
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:
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| Top 10 Open Interest For Dec 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | IWM dividend | 1. | dividend | |
| 2. | EEM dividend | 7. | FXI dividend | 2. | dividend | |
| 3. | SPX dividend | 8. | GE dividend | 3. | dividend | |
| 4. | QQQ dividend | 9. | VXX dividend | 4. | dividend | |
| 5. | EWZ dividend | 10. | BAC dividend | 5. | dividend | |
Want more examples? CSV Dividend | CSX Dividend
