SBS Dividend Type Payments

Basic Sanitation Co dividend

Although SBS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Basic Sanitation Co to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 1:45 PM ET):

Basic Sanitation Co (SBS)
Bid Ask Last Change Volume P/E Market Cap
10.70 10.71 10.71 +0.08 1.5M - 7.3B

SBS Dividend-Like Income Using Covered Calls

With SBS at 10.71, 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% 0.32 0.1
5% 0.54 0.1
10% 1.07 0.3

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 SBS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 12.50 0.15 63 0.2 1.79 (16.7%)
Jul 19 12.50 0.40 155 0.3 1.79 (16.7%)
5% Yield On SBS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 12.50 0.15 63 0.2 1.79 (16.7%)
Jul 19 12.50 0.40 155 0.3 1.79 (16.7%)

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Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
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Want more examples? SBRA Dividend | SBSI Dividend