SFNC Dividend

SIMMONS FIRST NATIONAL dividend

Although SFNC has a dividend of 0.15 with an ex-dividend date of Sep 13, you can sell covered calls on SIMMONS FIRST NATIONAL to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 12:50 PM ET):

SIMMONS FIRST NATIONAL (SFNC)
Bid Ask Last Change Volume P/E Market Cap
30.45 30.50 30.48 -0.22 54K 17 2.8B

SFNC Dividend-Like Income Using Covered Calls

With SFNC at 30.48, 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% 0.91 0.3
5% 1.52 0.4
10% 3.05 0.8

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:

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.XLF dividend   1.UVXY dividend
2.EEM dividend 7.FB dividend   2.NVDA dividend
3.QQQ dividend 8.FXI dividend   3.JWN dividend
4.SPX dividend 9.GLD dividend   4.AMAT dividend
5.BAC dividend 10.AABA dividend   5.DBD dividend

Want more examples? SFM Dividend | SFS Dividend