SHPG Dividend Type Payments

Although SHPG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SHIRE 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):

SHIRE (SHPG)
Bid Ask Last Change Volume P/E Market Cap
177.41 189.90 177.36 +1.85 833K 11 52B

SHPG Dividend-Like Income Using Covered Calls

With SHPG at 177.36, 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% 5.32 1.5
5% 8.87 2.4
10% 17.74 4.9

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 SHPG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 195.00 1.90 94 2.0 5.10 (2.9%)
Jul 19 195.00 6.00 276 2.2 5.10 (2.9%)
5% Yield On SHPG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 190.00 2.55 94 2.7 0.10 (0.1%)
Jul 19 190.00 7.50 276 2.7 0.10 (0.1%)

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Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
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5.BAC dividend 10.AMD dividend   5.TLRY dividend

Want more examples? SHOS Dividend | SHW Dividend