SAM Dividend Type Payments
Although SAM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Boston Beer Company, Inc. (The) to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| Boston Beer Company, Inc. (The) (SAM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 201.00 | 205.60 | 201.55 | -3.89 | 326K | 33 | 1.9B |
SAM Dividend-Like Income Using Covered Calls
With SAM at 201.55, 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% | 6.05 | 1.7 |
| 5% | 10.08 | 2.8 |
| 10% | 20.16 | 5.5 |
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 SAM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 210.00 | 10.40 | 59 | 17.6 | 4.40 (2.2%) | |
| Jul 18 | 210.00 | 2.20 | 31 | 7.1 | 4.40 (2.2%) | |
| 5% Yield On SAM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 210.00 | 10.40 | 59 | 17.6 | 4.40 (2.2%) | |
| Jul 18 | 210.00 | 2.20 | 31 | 7.1 | 4.40 (2.2%) | |
| 10% Yield On SAM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 210.00 | 10.40 | 59 | 17.6 | 4.40 (2.2%) | |
| Jul 18 | 210.00 | 2.20 | 31 | 7.1 | 4.40 (2.2%) | |
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| Top 10 Open Interest For Jun 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | ALT dividend | |
| 2. | SPY dividend | 7. | GLD dividend | 2. | RUN dividend | |
| 3. | QQQ dividend | 8. | TLT dividend | 3. | CAPR dividend | |
| 4. | TSLA dividend | 9. | AAPL dividend | 4. | SWBI dividend | |
| 5. | SLV dividend | 10. | INTC dividend | 5. | QUBT dividend | |
Want more examples? SAIL Dividend | SAN Dividend
