SBGI Dividend Type Payments
Although SBGI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Sinclair Broadcast Group, Inc. - Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| Sinclair Broadcast Group, Inc. - Class A (SBGI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 13.18 | 14.00 | 13.66 | 0.00 | 308K | 16 | 0.6B |
SBGI Dividend-Like Income Using Covered Calls
With SBGI at 13.66, 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% | 0.41 | 0.1 |
| 5% | 0.68 | 0.2 |
| 10% | 1.37 | 0.4 |
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 SBGI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 15.00 | 0.25 | 47 | 0.5 | 1.00 (7.3%) | |
| Nov 21 | 15.00 | 0.05 | 19 | 0.3 | 1.00 (7.3%) | |
| 5% Yield On SBGI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 15.00 | 0.25 | 47 | 0.5 | 1.00 (7.3%) | |
| Nov 21 | 15.00 | 0.05 | 19 | 0.3 | 1.00 (7.3%) | |
| 10% Yield On SBGI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 15.00 | 0.25 | 47 | 0.5 | 1.00 (7.3%) | |
| Mar 20 | 15.00 | 0.65 | 138 | 0.5 | 1.00 (7.3%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | INTC dividend | 1. | SRPT dividend | |
| 2. | KVUE dividend | 7. | TLT dividend | 2. | ENVX dividend | |
| 3. | NVDA dividend | 8. | ASST dividend | 3. | UPST dividend | |
| 4. | SLV dividend | 9. | EEM dividend | 4. | NVTS dividend | |
| 5. | GLD dividend | 10. | HYG dividend | 5. | SOUN dividend | |
Want more examples? SBCF Dividend | SBH Dividend
