SBGI Dividend

SINCLAIR BROADCAST GROUP dividend

Although SBGI has a dividend of 0.18 with an ex-dividend date of Aug 30, you can sell covered calls on SINCLAIR BROADCAST GROUP 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):

SINCLAIR BROADCAST GROUP (SBGI)
Bid Ask Last Change Volume P/E Market Cap
28.55 34.25 28.55 +0.45 1.3M 5.2 2.9B

SBGI Dividend-Like Income Using Covered Calls

With SBGI at 28.55, 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% 0.86 0.2
5% 1.43 0.4
10% 2.86 0.8

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 SBGI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 35.00 0.50 129 0.4 0.75 (2.6%)
Jan 18 36.00 0.45 157 0.3 1.75 (6.1%)
5% Yield On SBGI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 35.00 0.65 157 0.4 0.75 (2.6%)

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Want more examples? SBEU Dividend | SBGL Dividend