SCSC Dividend Type Payments

ScanSource, Inc dividend

Although SCSC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ScanSource, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 11:55 AM ET):

ScanSource, Inc (SCSC)
Bid Ask Last Change Volume P/E Market Cap
39.37 39.47 39.41 -0.22 21K 18 1.0B

SCSC Dividend-Like Income Using Covered Calls

With SCSC at 39.41, 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% 1.18 0.3
5% 1.97 0.5
10% 3.94 1.1

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 SCSC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 40.00 0.60 22 2.7 0.53 (1.3%)
Apr 18 40.00 1.25 56 2.2 0.53 (1.3%)
5% Yield On SCSC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 40.00 0.60 22 2.7 0.53 (1.3%)
Apr 18 40.00 1.25 56 2.2 0.53 (1.3%)
10% Yield On SCSC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 40.00 0.60 22 2.7 0.53 (1.3%)
Apr 18 40.00 1.25 56 2.2 0.53 (1.3%)

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Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
1.SPX dividend 6.EWZ dividend   1.CRON dividend
2.EEM dividend 7.GE dividend   2.FIT dividend
3.SPY dividend 8.LLY dividend   3.AMRN dividend
4.QQQ dividend 9.BAC dividend   4.KPTI dividend
5.FXI dividend 10.GLD dividend   5.IMGN dividend

Want more examples? SCS Dividend | SCTO Dividend