SHOP Dividend Type Payments

Although SHOP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Shopify, Inc Subordinate Voting Shares 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):

Shopify, Inc Subordinate Voting Shares (SHOP)
Bid Ask Last Change Volume P/E Market Cap
152.80 155.75 154.67 +3.17 1.5M - 0.0B

SHOP Dividend-Like Income Using Covered Calls

With SHOP at 154.67, 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% 4.64 1.3
5% 7.73 2.1
10% 15.47 4.2

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 SHOP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 14 170.00 0.15 4 3.8 14.25 (9.2%)
Dec 21 180.00 0.25 11 2.3 24.25 (15.7%)
5% Yield On SHOP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 14 170.00 0.15 4 3.8 14.25 (9.2%)
Dec 21 180.00 0.25 11 2.3 24.25 (15.7%)
10% Yield On SHOP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 14 167.50 0.25 4 6.3 11.75 (7.6%)
Dec 21 175.00 0.50 11 4.5 19.25 (12.4%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.DUST dividend 6.NSSC dividend   1. dividend
2.NOVT dividend 7.MOD dividend   2. dividend
3.MMS dividend 8.VV dividend   3. dividend
4.VSI dividend 9.EC dividend   4. dividend
5.DXJS dividend 10.NTWK dividend   5. dividend

Want more examples? SHOO Dividend | SHOS Dividend