SAH Dividend

Although SAH has a dividend of 0.38 with an ex-dividend date of Sep 15, you can sell covered calls on Sonic Automotive, Inc. 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):

Sonic Automotive, Inc. (SAH)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
68.86	76.72	73.76	-2.60	482K	17	2.6B

SAH Dividend-Like Income Using Covered Calls

With SAH at 73.76, 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%	2.21	0.6
5%	3.69	1.0
10%	7.38	2.0

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 SAH Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	80.00	0.90	144	0.6	3.28 (4.4%)
Nov 21	80.00	1.85	116	1.6	3.28 (4.4%)

5% Yield On SAH Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Nov 21	80.00	1.85	116	1.6	3.28 (4.4%)
Feb 20	80.00	2.40	207	1.2	3.28 (4.4%)

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1.	SLV dividend	6.	IBIT dividend	1.	NET dividend
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3.	GLD dividend	8.	AMZN dividend	3.	CAR dividend
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Want more examples? SAGE Dividend | SAIA Dividend