SNA Dividend Type Payments

Snap-On Incorporated dividend

Although SNA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Snap-On Incorporated to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

Snap-On Incorporated (SNA)
Bid Ask Last Change Volume P/E Market Cap
304.71 341.44 328.77 +6.92 236K 17 17B

SNA Dividend-Like Income Using Covered Calls

With SNA at 328.77, 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% 9.86 2.7
5% 16.44 4.5
10% 32.88 9.0

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 SNA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 340.00 4.40 44 6.7 0.00 (0.0%)
Dec 19 340.00 8.70 107 6.8 0.00 (0.0%)
5% Yield On SNA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 340.00 4.40 44 6.7 0.00 (0.0%)
Dec 19 340.00 8.70 107 6.8 0.00 (0.0%)

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Want more examples? SN Dividend | SNAP Dividend