SAN Dividend

Although SAN has a dividend of 0.10 with an ex-dividend date of Apr 29, you can sell covered calls on Banco Santander, S.A. Sponsored ADR (Spain) 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):

Banco Santander, S.A. Sponsored ADR (Spain) (SAN)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
4.70	4.80	4.75	0.00	3.0M	-	22B

SAN Dividend-Like Income Using Covered Calls

With SAN at 4.75, 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%	0.14	0.0
5%	0.24	0.1
10%	0.48	0.1

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 SAN Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jun 21	5.00	0.05	64	0.1	0.20 (4.2%)
Sep 20	5.00	0.20	155	0.1	0.20 (4.2%)

5% Yield On SAN Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jun 21	5.00	0.05	64	0.1	0.20 (4.2%)
Sep 20	5.00	0.20	155	0.1	0.20 (4.2%)

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Want more examples? SAM Dividend | SAND Dividend