SIX Dividend

SIX FLAGS ENTERTAINMENT dividend

Although SIX has a dividend of 0.78 with an ex-dividend date of Aug 29, you can sell covered calls on SIX FLAGS ENTERTAINMENT to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 10:15 AM ET):

SIX FLAGS ENTERTAINMENT (SIX)
Bid Ask Last Change Volume P/E Market Cap
66.97 67.03 66.97 -0.49 49K 20 5.7B

SIX Dividend-Like Income Using Covered Calls

With SIX at 66.97, 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% 2.01 0.6
5% 3.35 0.9
10% 6.70 1.8

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 SIX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 70.00 0.30 33 0.9 2.97 (4.4%)
Oct 19 70.00 0.70 61 1.1 2.97 (4.4%)
5% Yield On SIX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 67.50 1.00 33 3.0 0.47 (0.7%)
Oct 19 70.00 0.70 61 1.1 2.97 (4.4%)
10% Yield On SIX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 67.50 1.00 33 3.0 0.47 (0.7%)
Oct 19 67.50 1.55 61 2.5 0.47 (0.7%)

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Want more examples? SIVR Dividend | SIZ Dividend