SIL Dividend Type Payments
Although SIL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Global X Silver Miners ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:00 PM ET):
| Global X Silver Miners ETF (SIL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 103.05 | 103.13 | 103.09 | +5.70 | 2.8M | - | 3.3B |
SIL Dividend-Like Income Using Covered Calls
With SIL at 103.09, 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% | 3.09 | 0.8 |
| 5% | 5.15 | 1.4 |
| 10% | 10.31 | 2.8 |
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 SIL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 20 | 105.00 | 3.70 | 12 | 30.8 | 1.87 (1.8%) | |
| Mar 20 | 103.00 | 8.70 | 40 | 21.4 | 0.00 (0.0%) | |
| 5% Yield On SIL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 20 | 105.00 | 3.70 | 12 | 30.8 | 1.87 (1.8%) | |
| Mar 20 | 103.00 | 8.70 | 40 | 21.4 | 0.00 (0.0%) | |
| 10% Yield On SIL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 20 | 105.00 | 3.70 | 12 | 30.8 | 1.87 (1.8%) | |
| Mar 20 | 103.00 | 8.70 | 40 | 21.4 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | QQQ dividend | 1. | OCUL dividend | |
| 2. | NVDA dividend | 7. | SPY dividend | 2. | PINS dividend | |
| 3. | KWEB dividend | 8. | EWZ dividend | 3. | NET dividend | |
| 4. | IBIT dividend | 9. | TLT dividend | 4. | U dividend | |
| 5. | GLD dividend | 10. | CORZ dividend | 5. | RIVN dividend | |
Want more examples? SIJ Dividend | SILJ Dividend
