SIMO Dividend
Although SIMO has a dividend of 0.50 with an ex-dividend date of Aug 7, 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 Wed 4:16 PM ET):
| Silicon Motion Technology Corporation - American Depositary Shares, each (SIMO) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 68.00 | 74.00 | 71.46 | -0.86 | 352K | 106 | 2.2B |
SIMO Dividend-Like Income Using Covered Calls
With SIMO at 71.46, 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% | 2.14 | 0.6 |
| 5% | 3.57 | 1.0 |
| 10% | 7.15 | 2.0 |
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 | |
| Aug 15 | 75.00 | 1.00 | 52 | 1.9 | 1.00 (1.4%) | |
| Sep 19 | 75.00 | 3.50 | 87 | 4.0 | 1.00 (1.4%) | |
| 5% Yield On SIMO Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 75.00 | 1.00 | 52 | 1.9 | 1.00 (1.4%) | |
| Sep 19 | 75.00 | 3.50 | 87 | 4.0 | 1.00 (1.4%) | |
| 10% Yield On SIMO Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 19 | 75.00 | 3.50 | 87 | 4.0 | 1.00 (1.4%) | |
| Dec 19 | 75.00 | 5.20 | 178 | 2.9 | 1.00 (1.4%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | ALT dividend | |
| 2. | SLV dividend | 7. | IWM dividend | 2. | COGT dividend | |
| 3. | SPY dividend | 8. | AAPL dividend | 3. | CELC dividend | |
| 4. | GLD dividend | 9. | FXI dividend | 4. | IREN dividend | |
| 5. | TLT dividend | 10. | QQQ dividend | 5. | CAPR dividend | |
Want more examples? SILJ Dividend | SIMS Dividend
