SCG Dividend Type Payments

SCANA dividend

Although SCG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SCANA to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 11:25 AM ET):

SCANA (SCG)
Bid Ask Last Change Volume P/E Market Cap
37.13 37.15 37.12 -0.05 167K - 5.3B

SCG Dividend-Like Income Using Covered Calls

With SCG at 37.12, 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% 1.11 0.3
5% 1.86 0.5
10% 3.71 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 SCG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 40.00 0.15 37 0.4 2.85 (7.7%)
Nov 16 40.00 1.00 93 1.1 2.85 (7.7%)
5% Yield On SCG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 40.00 1.00 93 1.1 2.85 (7.7%)
Jan 18 42.50 0.80 156 0.5 5.35 (14.4%)
10% Yield On SCG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 40.00 1.00 93 1.1 2.85 (7.7%)
Jan 18 40.00 1.80 156 1.2 2.85 (7.7%)

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Want more examples? SCCO Dividend | SCHA Dividend