CSWC Dividend Type Payments
Although CSWC has no upcoming (meaning, Board-approved and announced) dividends, 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 Tue 2:35 PM ET):
| Capital Southwest Corp (CSWC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 21.41 | 21.47 | 21.42 | +0.05 | 30K | 17 | 0.4B |
CSWC Dividend-Like Income Using Covered Calls
With CSWC at 21.42, 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% | 0.64 | 0.2 |
| 5% | 1.07 | 0.3 |
| 10% | 2.14 | 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:
| 3% Yield On CSWC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 15 | 22.50 | 0.05 | 25 | 0.2 | 1.03 (4.8%) | |
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| Top 10 Open Interest For Mar 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPX dividend | 6. | EWZ dividend | 1. | ROKU dividend | |
| 2. | EEM dividend | 7. | GE dividend | 2. | BHC dividend | |
| 3. | SPY dividend | 8. | BAC dividend | 3. | IQ dividend | |
| 4. | QQQ dividend | 9. | XOP dividend | 4. | DBX dividend | |
| 5. | FXI dividend | 10. | GLD dividend | 5. | VIPS dividend | |
Want more examples? CSV Dividend | CSX Dividend
