SABR Dividend

Sabre Corp dividend

Although SABR has a dividend of 0.14 with an ex-dividend date of Dec 20, 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 Tue 4:16 PM ET):

Sabre Corp (SABR)
Bid Ask Last Change Volume P/E Market Cap
24.83 26.00 24.84 -0.20 1.5M - 0.0B

SABR Dividend-Like Income Using Covered Calls

With SABR at 24.84, 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% 0.75 0.2
5% 1.24 0.3
10% 2.48 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:

3% Yield On SABR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 30.00 0.65 221 0.3 4.00 (16.1%)
5% Yield On SABR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 27.50 1.20 221 0.5 1.50 (6.0%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.DUST dividend 6.NSSC dividend   1. dividend
2.NOVT dividend 7.MOD dividend   2. dividend
3.MMS dividend 8.VV dividend   3. dividend
4.VSI dividend 9.EC dividend   4. dividend
5.DXJS dividend 10.NTWK dividend   5. dividend

Want more examples? SAA Dividend | SAFE Dividend