SMG Dividend Type Payments
Although SMG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Scotts Miracle-Gro Company (The) to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| Scotts Miracle-Gro Company (The) (SMG) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 57.76 | 59.74 | 58.62 | +0.13 | 1.2M | 73 | 3.4B |
SMG Dividend-Like Income Using Covered Calls
With SMG at 58.62, 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% | 1.76 | 0.5 |
| 5% | 2.93 | 0.8 |
| 10% | 5.86 | 1.6 |
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 SMG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 60.00 | 0.30 | 4 | 7.5 | 0.26 (0.4%) | |
| Jan 16 | 60.00 | 1.55 | 32 | 4.8 | 0.26 (0.4%) | |
| 5% Yield On SMG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 60.00 | 0.30 | 4 | 7.5 | 0.26 (0.4%) | |
| Jan 16 | 60.00 | 1.55 | 32 | 4.8 | 0.26 (0.4%) | |
| 10% Yield On SMG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 60.00 | 0.30 | 4 | 7.5 | 0.26 (0.4%) | |
| Jan 16 | 60.00 | 1.55 | 32 | 4.8 | 0.26 (0.4%) | |
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| Top 10 Open Interest For Dec 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | ALT dividend | |
| 2. | SPY dividend | 7. | SLV dividend | 2. | EWTX dividend | |
| 3. | IBIT dividend | 8. | NFLX dividend | 3. | RGTI dividend | |
| 4. | QQQ dividend | 9. | XLF dividend | 4. | NNE dividend | |
| 5. | TLT dividend | 10. | AMZN dividend | 5. | ABAT dividend | |
Want more examples? SMFG Dividend | SMH Dividend
