SGEN Dividend Type Payments

SEATTLE GENETICS dividend

Although SGEN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SEATTLE GENETICS to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

SEATTLE GENETICS (SGEN)
Bid Ask Last Change Volume P/E Market Cap
71.50 75.89 74.63 +0.83 601K - 12B

SGEN Dividend-Like Income Using Covered Calls

With SGEN at 74.63, 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% 2.24 0.6
5% 3.73 1.0
10% 7.46 2.0

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 SGEN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 80.00 1.20 39 3.1 4.11 (5.5%)
Dec 21 80.00 4.80 130 3.7 4.11 (5.5%)
5% Yield On SGEN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 80.00 1.20 39 3.1 4.11 (5.5%)
Dec 21 80.00 4.80 130 3.7 4.11 (5.5%)
10% Yield On SGEN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 80.00 1.20 39 3.1 4.11 (5.5%)
Dec 21 80.00 4.80 130 3.7 4.11 (5.5%)

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