SKT Dividend

TANGER FACTORY OUTLET dividend

Although SKT has a dividend of 0.35 with an ex-dividend date of Oct 30, you can sell covered calls on TANGER FACTORY OUTLET to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:40 PM ET):

TANGER FACTORY OUTLET (SKT)
Bid Ask Last Change Volume P/E Market Cap
21.72 21.73 21.73 +0.21 271K 33 2.0B

SKT Dividend-Like Income Using Covered Calls

With SKT at 21.73, 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% 0.65 0.2
5% 1.09 0.3
10% 2.17 0.6

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 SKT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 22.50 0.25 32 0.8 0.77 (3.5%)
Dec 21 22.50 0.45 67 0.7 0.77 (3.5%)
5% Yield On SKT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 22.50 0.25 32 0.8 0.77 (3.5%)
Dec 21 22.50 0.45 67 0.7 0.77 (3.5%)
10% Yield On SKT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 22.50 0.25 32 0.8 0.77 (3.5%)
Dec 21 22.50 0.45 67 0.7 0.77 (3.5%)

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Want more examples? SKM Dividend | SKX Dividend