SBUX Dividend

STARBUCKS dividend

Although SBUX has a dividend of 0.36 with an ex-dividend date of Aug 8, you can sell covered calls on STARBUCKS to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

STARBUCKS (SBUX)
Bid Ask Last Change Volume P/E Market Cap
51.16 51.27 51.28 +0.34 11.2M 17 70B

SBUX Dividend-Like Income Using Covered Calls

With SBUX at 51.28, 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% 1.54 0.4
5% 2.56 0.7
10% 5.13 1.4

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 SBUX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 20 52.50 0.06 4 1.5 1.23 (2.4%)
Jul 27 57.00 0.05 11 0.5 5.73 (11.2%)
5% Yield On SBUX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 20 52.50 0.06 4 1.5 1.23 (2.4%)
Jul 27 55.50 0.10 11 0.9 4.23 (8.2%)
10% Yield On SBUX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 20 52.50 0.06 4 1.5 1.23 (2.4%)
Jul 27 54.50 0.19 11 1.7 3.23 (6.3%)

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Top 10 Open Interest For Jul 20 Expiration     Top 5 High Yield
1.SPY dividend 6.EWZ dividend   1.SKX dividend
2.EEM dividend 7.MU dividend   2.CLF dividend
3.XLF dividend 8.T dividend   3.VKTX dividend
4.BAC dividend 9.QQQ dividend   4.IQ dividend
5.SPX dividend 10.VXX dividend   5.EBAY dividend

Want more examples? SBUS Dividend | SC Dividend