SBAC Dividend Type Payments
Although SBAC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SBA Communications Corporation - Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 12:15 PM ET):
| SBA Communications Corporation - Class A (SBAC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 190.20 | 190.51 | 190.32 | -0.04 | 441K | 24 | 20B |
SBAC Dividend-Like Income Using Covered Calls
With SBAC at 190.32, 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% | 5.71 | 1.6 |
| 5% | 9.52 | 2.6 |
| 10% | 19.03 | 5.2 |
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:
| 3% Yield On SBAC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 16 | 190.00 | 4.70 | 29 | 14.4 | 0.00 (0.0%) | |
| Feb 20 | 190.00 | 7.70 | 64 | 11.2 | 0.00 (0.0%) | |
| 5% Yield On SBAC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 16 | 190.00 | 4.70 | 29 | 14.4 | 0.00 (0.0%) | |
| Feb 20 | 190.00 | 7.70 | 64 | 11.2 | 0.00 (0.0%) | |
| 10% Yield On SBAC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 16 | 190.00 | 4.70 | 29 | 14.4 | 0.00 (0.0%) | |
| Feb 20 | 190.00 | 7.70 | 64 | 11.2 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Jan 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | AAPL dividend | 1. | RKLB dividend | |
| 2. | INTC dividend | 7. | NIO dividend | 2. | LUNR dividend | |
| 3. | TLT dividend | 8. | GLD dividend | 3. | EWTX dividend | |
| 4. | IBIT dividend | 9. | NFLX dividend | 4. | WULF dividend | |
| 5. | SLV dividend | 10. | ASST dividend | 5. | ARKO dividend | |
Want more examples? SB Dividend | SBB Dividend
