SIG Dividend Type Payments
Although SIG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Signet Jewelers Limited Common 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):
| Signet Jewelers Limited Common Shares (SIG) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 88.00 | 94.28 | 91.23 | -3.53 | 1.3M | 29 | 3.9B |
SIG Dividend-Like Income Using Covered Calls
With SIG at 91.23, 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% | 2.74 | 0.7 |
| 5% | 4.56 | 1.2 |
| 10% | 9.12 | 2.5 |
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 SIG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 6 | 94.00 | 0.60 | 4 | 8.0 | 0.00 (0.0%) | |
| Mar 6 | 100.00 | 1.70 | 32 | 5.3 | 5.72 (6.3%) | |
| 5% Yield On SIG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 6 | 94.00 | 0.60 | 4 | 8.0 | 0.00 (0.0%) | |
| Mar 6 | 100.00 | 1.70 | 32 | 5.3 | 5.72 (6.3%) | |
| 10% Yield On SIG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 6 | 94.00 | 0.60 | 4 | 8.0 | 0.00 (0.0%) | |
| Mar 6 | 100.00 | 1.70 | 32 | 5.3 | 5.72 (6.3%) | |
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| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | QQQ dividend | 1. | SNAP dividend | |
| 2. | NVDA dividend | 7. | EWZ dividend | 2. | CMG dividend | |
| 3. | KWEB dividend | 8. | INTC dividend | 3. | SMCI dividend | |
| 4. | GLD dividend | 9. | SPY dividend | 4. | IREN dividend | |
| 5. | IBIT dividend | 10. | CORZ dividend | 5. | EOSE dividend | |
Want more examples? SIFY Dividend | SIGA Dividend
