SILV Dividend Type Payments
Although SILV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SilverCrest Metals Inc. Common Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| SilverCrest Metals Inc. Common Shares (SILV) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 9.00 |
9.16 |
9.07 |
-0.11 |
2.3M |
12 |
0.0B |
SILV Dividend-Like Income Using Covered Calls
With SILV at 9.07, 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% |
0.27 |
0.1 |
| 5% |
0.45 |
0.1 |
| 10% |
0.91 |
0.2 |
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 SILV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 15 |
10.00 |
0.90 |
184 |
0.5 |
0.84 (9.3%) |
| Aug 16 |
10.00 |
0.50 |
93 |
0.5 |
0.84 (9.3%) |
| 5% Yield On SILV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 15 |
10.00 |
0.90 |
184 |
0.5 |
0.84 (9.3%) |
| Aug 16 |
10.00 |
0.50 |
93 |
0.5 |
0.84 (9.3%) |
| 10% Yield On SILV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 15 |
10.00 |
0.90 |
184 |
0.5 |
0.84 (9.3%) |
| Aug 16 |
10.00 |
0.50 |
93 |
0.5 |
0.84 (9.3%) |
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