SHW Dividend Type Payments

SHERWIN-WILLIAMS dividend

Although SHW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SHERWIN-WILLIAMS to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 1:00 PM ET):

SHERWIN-WILLIAMS (SHW)
Bid Ask Last Change Volume P/E Market Cap
442.94 443.13 442.98 +0.63 179K 22 41B

SHW Dividend-Like Income Using Covered Calls

With SHW at 442.98, 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% 13.29 3.6
5% 22.15 6.1
10% 44.30 12.1

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 SHW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 455.00 0.40 8 5.0 11.87 (2.7%)
Aug 31 460.00 0.55 15 3.7 16.87 (3.8%)
5% Yield On SHW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 452.50 0.70 8 8.8 9.37 (2.1%)
Aug 31 455.00 1.20 15 8.0 11.87 (2.7%)
10% Yield On SHW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 450.00 1.15 8 14.4 6.87 (1.6%)
Aug 31 452.50 1.90 15 12.7 9.37 (2.1%)

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

 
Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.EEM dividend 6.GE dividend   1.UVXY dividend
2.SPY dividend 7.GLD dividend   2.AKRX dividend
3.SPX dividend 8.FB dividend   3.LB dividend
4.QQQ dividend 9.IWM dividend   4.COTY dividend
5.XLF dividend 10.GDX dividend   5.TSLA dividend

Want more examples? SHPG Dividend | SHY Dividend