SAGE Dividend Type Payments
Although SAGE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Sage Therapeutics, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:55 PM ET):
| Sage Therapeutics, Inc. (SAGE) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 8.71 | 8.72 | 8.71 | -0.06 | 4.0M | - | 0.5B |
SAGE Dividend-Like Income Using Covered Calls
With SAGE at 8.71, here's a table showing how big the annual "dividend" (i.e. 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% | 0.26 | 0.1 |
| 5% | 0.44 | 0.1 |
| 10% | 0.87 | 0.2 |
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 Aug 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | IBIT dividend | 1. | APLD dividend | |
| 2. | NVDA dividend | 7. | TSLA dividend | 2. | NET dividend | |
| 3. | GLD dividend | 8. | AMZN dividend | 3. | MBX dividend | |
| 4. | IWM dividend | 9. | QQQ dividend | 4. | RDDT dividend | |
| 5. | SPY dividend | 10. | INTC dividend | 5. | LUMN dividend | |
Want more examples? SAFT Dividend | SAH Dividend
