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 Wed 4:16 PM ET):

Scotts Miracle-Gro Company (The) (SMG)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
54.00	56.00	55.19	-1.02	600K	70	3.2B

SMG Dividend-Like Income Using Covered Calls

With SMG at 55.19, 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%	1.66	0.5
5%	2.76	0.8
10%	5.52	1.5

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
Oct 17	57.50	0.05	3	1.7	1.50 (2.7%)
Dec 19	57.50	2.80	66	4.2	1.50 (2.7%)

5% Yield On SMG Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	57.50	0.05	3	1.7	1.50 (2.7%)
Dec 19	57.50	2.80	66	4.2	1.50 (2.7%)

10% Yield On SMG Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	57.50	0.05	3	1.7	1.50 (2.7%)
Dec 19	57.50	2.80	66	4.2	1.50 (2.7%)

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Want more examples? SMFG Dividend | SMH Dividend