SLF Dividend Type Payments
Although SLF has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Sun Life Financial Inc. 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):
| Sun Life Financial Inc. (SLF) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 57.00 | 62.00 | 60.37 | -0.63 | 570K | 16 | 37B |
SLF Dividend-Like Income Using Covered Calls
With SLF at 60.37, 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% | 1.81 | 0.5 |
| 5% | 3.02 | 0.8 |
| 10% | 6.04 | 1.7 |
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 SLF Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 21 | 65.00 | 0.75 | 113 | 0.7 | 3.00 (5.0%) | |
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| Top 10 Open Interest For Aug 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | IBIT dividend | 1. | UPST dividend | |
| 2. | NVDA dividend | 7. | TSLA dividend | 2. | PTON dividend | |
| 3. | GLD dividend | 8. | QQQ dividend | 3. | APPS dividend | |
| 4. | IWM dividend | 9. | AMZN dividend | 4. | QBTS dividend | |
| 5. | SPY dividend | 10. | AAPL dividend | 5. | LYFT dividend | |
Want more examples? SLDR Dividend | SLG Dividend
