SABR Dividend

SABRE CORP COMMON dividend

Although SABR has a dividend of 0.14 with an ex-dividend date of Sep 20, you can sell covered calls on SABRE CORP COMMON to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

SABRE CORP COMMON (SABR)
Bid Ask Last Change Volume P/E Market Cap
22.59 25.47 24.74 +0.11 2.1M 19 6.8B

SABR Dividend-Like Income Using Covered Calls

With SABR at 24.74, 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% 0.74 0.2
5% 1.24 0.3
10% 2.47 0.7

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 Sep 21 Expiration     Top 5 High Yield
1.EEM dividend 6.GE dividend   1.AMAT dividend
2.SPY dividend 7.GLD dividend   2.NVDA dividend
3.SPX dividend 8.IWM dividend   3.UVXY dividend
4.QQQ dividend 9.FB dividend   4.DE dividend
5.XLF dividend 10.GDX dividend   5.AKRX dividend

Want more examples? SAA Dividend | SAFE Dividend