SBS Dividend Type Payments
Although SBS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp American to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp American (SBS) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 22.01 | 22.64 | 22.42 | +0.29 | 637K | 7.4 | 15B |
SBS Dividend-Like Income Using Covered Calls
With SBS at 22.42, 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% | 0.67 | 0.2 |
| 5% | 1.12 | 0.3 |
| 10% | 2.24 | 0.6 |
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:
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| Top 10 Open Interest For Sep 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | FXI dividend | 1. | LULU dividend | |
| 2. | PCG dividend | 7. | IBIT dividend | 2. | SATS dividend | |
| 3. | IWM dividend | 8. | QQQ dividend | 3. | ATYR dividend | |
| 4. | SPY dividend | 9. | SLV dividend | 4. | IREN dividend | |
| 5. | EEM dividend | 10. | INTC dividend | 5. | IONQ dividend | |
Want more examples? SBRA Dividend | SBSI Dividend
