SIMO Dividend
Although SIMO has a dividend of 0.50 with an ex-dividend date of Feb 11, you can sell covered calls on Silicon Motion Technology Corporation - American Depositary Shares, each to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 12:50 PM ET):
| Silicon Motion Technology Corporation - American Depositary Shares, each (SIMO) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 135.01 | 136.00 | 135.41 | +7.35 | 640K | 180 | 3.9B |
SIMO Dividend-Like Income Using Covered Calls
With SIMO at 135.41, 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% | 4.06 | 1.1 |
| 5% | 6.77 | 1.9 |
| 10% | 13.54 | 3.7 |
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 SIMO Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 20 | 140.00 | 3.60 | 12 | 30.0 | 4.00 (3.0%) | |
| Mar 20 | 140.00 | 8.70 | 40 | 21.8 | 4.00 (3.0%) | |
| 5% Yield On SIMO Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 20 | 140.00 | 3.60 | 12 | 30.0 | 4.00 (3.0%) | |
| Mar 20 | 140.00 | 8.70 | 40 | 21.8 | 4.00 (3.0%) | |
| 10% Yield On SIMO Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 20 | 140.00 | 3.60 | 12 | 30.0 | 4.00 (3.0%) | |
| Mar 20 | 140.00 | 8.70 | 40 | 21.8 | 4.00 (3.0%) | |
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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. | QS dividend | |
| 3. | KWEB dividend | 8. | EWZ dividend | 3. | U dividend | |
| 4. | IBIT dividend | 9. | TLT dividend | 4. | PINS dividend | |
| 5. | GLD dividend | 10. | CORZ dividend | 5. | RIVN dividend | |
Want more examples? SILJ Dividend | SIMS Dividend
