SGEN Dividend Type Payments

Seattle Genetics, Inc dividend

Although SGEN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Seattle Genetics, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 10:45 AM ET):

Seattle Genetics, Inc (SGEN)
Bid Ask Last Change Volume P/E Market Cap
76.20 76.28 76.28 +1.11 499K -66.1 12B

SGEN Dividend-Like Income Using Covered Calls

With SGEN at 76.28, 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% 2.29 0.6
5% 3.81 1.0
10% 7.63 2.1

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 SGEN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 90.00 0.20 30 0.7 13.72 (18.0%)
Sep 20 90.00 0.70 65 1.1 13.72 (18.0%)
5% Yield On SGEN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 85.00 0.45 30 1.5 8.72 (11.4%)
Sep 20 90.00 0.70 65 1.1 13.72 (18.0%)
10% Yield On SGEN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 80.00 1.55 30 5.2 3.72 (4.9%)
Sep 20 85.00 1.45 65 2.2 8.72 (11.4%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Jul 19 Expiration     Top 5 High Yield
1.SPY dividend 6.OIH dividend   1.SKX dividend
2.SPX dividend 7.USO dividend   2.BFR dividend
3.EEM dividend 8.AAPL dividend   3.CLF dividend
4.IWM dividend 9.FXI dividend   4.CRWD dividend
5.QQQ dividend 10.VXX dividend   5.MAN dividend

Want more examples? SGDM Dividend | SGG Dividend