SIRI Dividend

SIRIUS XM HOLDINGS INC COMMON dividend

Although SIRI has a dividend of 0.01 with an ex-dividend date of Nov 8, you can sell covered calls on SIRIUS XM HOLDINGS INC COMMON to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

SIRIUS XM HOLDINGS INC COMMON (SIRI)
Bid Ask Last Change Volume P/E Market Cap
6.00 6.02 6.01 -0.15 25.7M 34 27B

SIRI Dividend-Like Income Using Covered Calls

With SIRI at 6.01, here's a table showing how big the annual "dividend" (ie. 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% 0.18 0.0
5% 0.30 0.1
10% 0.60 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 SIRI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 6.50 0.02 8 0.3 0.48 (8.0%)
Nov 2 7.00 0.01 15 0.1 0.98 (16.3%)
5% Yield On SIRI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 6.50 0.02 8 0.3 0.48 (8.0%)
Nov 2 6.00 0.15 15 0.9 0.00 (0.0%)
10% Yield On SIRI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 6.50 0.02 8 0.3 0.48 (8.0%)
Nov 2 6.00 0.15 15 0.9 0.00 (0.0%)

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