SABR Dividend Type Payments

Sabre Corp dividend

Although SABR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Sabre Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

Sabre Corp (SABR)
Bid Ask Last Change Volume P/E Market Cap
20.75 22.53 22.53 +0.57 3.3M 18 6.0B

SABR Dividend-Like Income Using Covered Calls

With SABR at 22.53, 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% 0.68 0.2
5% 1.13 0.3
10% 2.25 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 SABR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 22.50 0.55 29 1.8 0.00 (0.0%)
Apr 18 22.50 0.80 63 1.2 0.00 (0.0%)
5% Yield On SABR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 22.50 0.55 29 1.8 0.00 (0.0%)
Apr 18 22.50 0.80 63 1.2 0.00 (0.0%)
10% Yield On SABR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 22.50 0.55 29 1.8 0.00 (0.0%)
Apr 18 22.50 0.80 63 1.2 0.00 (0.0%)

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Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
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Want more examples? SAA Dividend | SAFE Dividend