SCWX Dividend Type Payments

Although SCWX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SECUREWORKS CORP CL A COMMON to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 3:10 PM ET):

SECUREWORKS CORP CL A COMMON (SCWX)
Bid Ask Last Change Volume P/E Market Cap
12.85 12.90 12.89 -0.27 29K - 1.1B

SCWX Dividend-Like Income Using Covered Calls

With SCWX at 12.89, 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% 0.39 0.1
5% 0.64 0.2
10% 1.29 0.4

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 SCWX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 15.00 0.15 36 0.4 2.10 (16.3%)
Oct 19 17.50 0.10 64 0.2 4.60 (35.7%)
5% Yield On SCWX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 15.00 0.15 36 0.4 2.10 (16.3%)
Oct 19 15.00 0.30 64 0.5 2.10 (16.3%)
10% Yield On SCWX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 15.00 0.15 36 0.4 2.10 (16.3%)
Oct 19 15.00 0.30 64 0.5 2.10 (16.3%)

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Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.EEM dividend 6.GE dividend   1.AKRX dividend
2.SPY dividend 7.GLD dividend   2.COTY dividend
3.SPX dividend 8.FB dividend   3.LB dividend
4.QQQ dividend 9.IWM dividend   4.UVXY dividend
5.XLF dividend 10.GDX dividend   5.TSLA dividend

Want more examples? SCVL Dividend | SCYX Dividend