SCHL Dividend

Although SCHL has a dividend of 0.20 with an ex-dividend date of Apr 29, you can sell covered calls on Scholastic Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 3:45 PM ET):

Scholastic Corporation (SCHL)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
36.58	36.61	36.61	+1.00	116K	26	2.1B

SCHL Dividend-Like Income Using Covered Calls

With SCHL at 36.61, 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%	1.10	0.3
5%	1.83	0.5
10%	3.66	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 SCHL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 17	40.00	0.10	25	0.4	3.39 (9.3%)
Jun 21	40.00	0.45	60	0.8	3.39 (9.3%)

5% Yield On SCHL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jun 21	40.00	0.45	60	0.8	3.39 (9.3%)
Sep 20	40.00	2.00	151	1.3	3.39 (9.3%)

10% Yield On SCHL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 20	40.00	2.00	151	1.3	3.39 (9.3%)
Dec 20	40.00	3.30	242	1.4	3.39 (9.3%)

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Want more examples? SCHK Dividend | SCHM Dividend