SAIC Dividend Type Payments

SCIENCE APPLICATIONS INTL CORP dividend

Although SAIC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SCIENCE APPLICATIONS INTL 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):

SCIENCE APPLICATIONS INTL CORP (SAIC)
Bid Ask Last Change Volume P/E Market Cap
69.69 90.00 88.99 +1.24 89K 21 3.7B

SAIC Dividend-Like Income Using Covered Calls

With SAIC at 88.99, 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% 2.67 0.7
5% 4.45 1.2
10% 8.90 2.4

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 SAIC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 100.00 0.40 36 1.1 10.00 (11.2%)
Nov 16 100.00 0.95 92 1.0 10.00 (11.2%)
5% Yield On SAIC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 95.00 1.35 36 3.8 5.00 (5.6%)
Nov 16 95.00 2.05 92 2.2 5.00 (5.6%)
10% Yield On SAIC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 95.00 1.35 36 3.8 5.00 (5.6%)
Nov 16 90.00 4.00 92 4.3 0.00 (0.0%)

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Want more examples? SAIA Dividend | SAIL Dividend