SC Dividend Type Payments

SANTANDER CONSUMER USA HOLDINGS dividend

Although SC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SANTANDER CONSUMER USA HOLDINGS to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 9:50 AM ET):

SANTANDER CONSUMER USA HOLDINGS (SC)
Bid Ask Last Change Volume P/E Market Cap
21.50 21.51 21.50 +0.18 23K 5.7 7.7B

SC Dividend-Like Income Using Covered Calls

With SC at 21.50, 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% 0.65 0.2
5% 1.08 0.3
10% 2.15 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:

3% Yield On SC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 23.00 0.10 30 0.3 1.49 (6.9%)
Jan 18 24.00 0.40 121 0.3 2.49 (11.6%)
5% Yield On SC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 23.00 0.10 30 0.3 1.49 (6.9%)
Jan 18 24.00 0.40 121 0.3 2.49 (11.6%)
10% Yield On SC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 22.00 0.30 30 1.0 0.49 (2.3%)
Jan 18 22.00 1.05 121 0.9 0.49 (2.3%)

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

 
Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.EEM dividend 6.GE dividend   1.CRON dividend
2.SPY dividend 7.EWZ dividend   2.GERN dividend
3.SPX dividend 8.VXX dividend   3.CGC dividend
4.QQQ dividend 9.FB dividend   4.MU dividend
5.XLF dividend 10.BABA dividend   5.ANAB dividend

Want more examples? SBUX Dividend | SCAP Dividend