SD Dividend
Although SD has a dividend of 0.11 with an ex-dividend date of May 19, you can sell covered calls on SandRidge Energy, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| SandRidge Energy, Inc. (SD) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 10.10 | 11.00 | 10.52 | -0.29 | 281K | 6.2 | 0.8B |
SD Dividend-Like Income Using Covered Calls
With SD at 10.52, 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% | 0.32 | 0.1 |
| 5% | 0.53 | 0.1 |
| 10% | 1.05 | 0.3 |
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 SD Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 12.50 | 0.15 | 157 | 0.1 | 1.50 (14.3%) | |
| Dec 19 | 12.50 | 0.30 | 220 | 0.1 | 1.50 (14.3%) | |
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | RCAT dividend | |
| 2. | SPY dividend | 7. | SLV dividend | 2. | DOCS dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | CAVA dividend | |
| 4. | TSLA dividend | 9. | GLD dividend | 4. | QUBT dividend | |
| 5. | QQQ dividend | 10. | INTC dividend | 5. | SERV dividend | |
Want more examples? SCZ Dividend | SDCI Dividend
