SBH Dividend Type Payments

SALLY BEAUTY HOLDINGS dividend

Although SBH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SALLY BEAUTY HOLDINGS to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 10:30 AM ET):

SALLY BEAUTY HOLDINGS (SBH)
Bid Ask Last Change Volume P/E Market Cap
18.41 18.42 18.41 -0.50 696K 10 2.3B

SBH Dividend-Like Income Using Covered Calls

With SBH at 18.41, 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% 0.55 0.2
5% 0.92 0.3
10% 1.84 0.5

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 SBH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 20.00 0.30 31 1.0 1.58 (8.6%)
Dec 21 22.50 0.10 66 0.2 4.08 (22.2%)
5% Yield On SBH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 20.00 0.30 31 1.0 1.58 (8.6%)
Dec 21 20.00 0.55 66 0.8 1.58 (8.6%)
10% Yield On SBH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 20.00 0.30 31 1.0 1.58 (8.6%)
Dec 21 20.00 0.55 66 0.8 1.58 (8.6%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.PBR dividend   1.GBT dividend
2.SPX dividend 7.MU dividend   2.CLVS dividend
3.QQQ dividend 8.FXI dividend   3.LLNW dividend
4.EEM dividend 9.IWM dividend   4.UVXY dividend
5.BAC dividend 10.AMD dividend   5.CRON dividend

Want more examples? SBGL Dividend | SBIO Dividend