SHW Dividend Type Payments

Sherwin-Williams Co dividend

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

Sherwin-Williams Co (SHW)
Bid Ask Last Change Volume P/E Market Cap
384.05 446.98 431.35 +0.32 458K 37 40B

SHW Dividend-Like Income Using Covered Calls

With SHW at 431.35, 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% 12.94 3.5
5% 21.57 5.9
10% 43.14 11.8

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:

3% Yield On SHW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 29 447.50 0.45 12 3.8 0.52 (0.1%)
Apr 12 447.50 1.45 26 5.6 0.52 (0.1%)
5% Yield On SHW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 26 455.00 3.10 40 7.8 8.02 (1.9%)
Jun 21 450.00 8.40 96 8.8 3.02 (0.7%)
10% Yield On SHW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 26 447.50 4.80 40 12.0 0.52 (0.1%)

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