SCCO Dividend Type Payments

Southern Copper Corp dividend

Although SCCO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Southern Copper Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

Southern Copper Corp (SCCO)
Bid Ask Last Change Volume P/E Market Cap
33.81 35.65 34.72 -0.37 587K 19 27B

SCCO Dividend-Like Income Using Covered Calls

With SCCO at 34.72, 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% 1.04 0.3
5% 1.74 0.5
10% 3.47 1.0

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 SCCO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 38.56 0.15 36 0.4 2.91 (8.4%)
Jul 19 40.00 0.20 64 0.3 4.35 (12.5%)
5% Yield On SCCO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 37.56 0.35 36 1.0 1.91 (5.5%)
Jul 19 39.00 0.40 64 0.6 3.35 (9.6%)
10% Yield On SCCO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 37.56 0.35 36 1.0 1.91 (5.5%)
Jul 19 37.00 0.85 64 1.3 1.35 (3.9%)

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

 
Top 10 Open Interest For Jun 21 Expiration     Top 5 High Yield
1.SPY dividend 6.FXI dividend   1.BCRX dividend
2.SPX dividend 7.BAC dividend   2.CARA dividend
3.EEM dividend 8.AAPL dividend   3.NIO dividend
4.QQQ dividend 9.XLF dividend   4.LB dividend
5.EWZ dividend 10.VXX dividend   5.FCAU dividend

Want more examples? SCC Dividend | SCG Dividend