SNE Dividend Type Payments

SONY CORP dividend

Although SNE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SONY CORP to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 10:10 AM ET):

SONY CORP (SNE)
Bid Ask Last Change Volume P/E Market Cap
53.29 53.33 53.33 -0.95 148K 12 69B

SNE Dividend-Like Income Using Covered Calls

With SNE at 53.33, here's a table showing how big the annual "dividend" (ie. 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% 1.60 0.4
5% 2.67 0.7
10% 5.33 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 SNE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 54.50 0.05 3 1.7 1.17 (2.2%)
Aug 24 56.00 0.05 10 0.5 2.67 (5.0%)
5% Yield On SNE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 54.50 0.05 3 1.7 1.17 (2.2%)
Aug 24 55.50 0.10 10 1.0 2.17 (4.1%)
10% Yield On SNE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 54.50 0.05 3 1.7 1.17 (2.2%)
Aug 24 55.00 0.15 10 1.5 1.67 (3.1%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
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Want more examples? SNDX Dividend | SNH Dividend