SMBK Dividend
Although SMBK has a dividend of 0.08 with an ex-dividend date of May 9, you can sell covered calls on SmartFinancial, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
SmartFinancial, Inc. (SMBK) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
16.90 | 33.71 | 20.60 | -0.06 | 91K | 12 | 0.4B |
SMBK Dividend-Like Income Using Covered Calls
With SMBK at 20.60, 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% | 0.62 | 0.2 |
5% | 1.03 | 0.3 |
10% | 2.06 | 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:
Want to increase dividends with covered calls? Sign Up For A Free Trial
Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | EEM dividend | 1. | FSLY dividend | |
2. | HYG dividend | 7. | KWEB dividend | 2. | WOLF dividend | |
3. | QQQ dividend | 8. | TSLA dividend | 3. | PENN dividend | |
4. | SPY dividend | 9. | SLV dividend | 4. | ENVX dividend | |
5. | FXI dividend | 10. | EWZ dividend | 5. | PINS dividend |
Want more examples? SMB Dividend | SMCI Dividend