SHW Dividend

Although SHW has a dividend of 0.79 with an ex-dividend date of May 16, you can sell covered calls on Sherwin-Williams Company (The) 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):

Sherwin-Williams Company (The) (SHW)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
330.00	351.90	352.92	+4.79	2.3M	32	88B

SHW Dividend-Like Income Using Covered Calls

With SHW at 352.92, here's a table showing how big the annual "dividend" (i.e. 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%	10.59	2.9
5%	17.65	4.8
10%	35.29	9.7

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
May 16	360.00	3.30	17	19.4	8.10 (2.3%)
Sep 19	360.00	19.70	143	13.8	8.10 (2.3%)

5% Yield On SHW Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 16	360.00	3.30	17	19.4	8.10 (2.3%)
Sep 19	360.00	19.70	143	13.8	8.10 (2.3%)

10% Yield On SHW Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 16	360.00	3.30	17	19.4	8.10 (2.3%)
Sep 19	360.00	19.70	143	13.8	8.10 (2.3%)

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Want more examples? SHV Dividend | SHY Dividend