SNN Dividend

SMITH & NEPHEW dividend

Although SNN has a dividend of 0.28 with an ex-dividend date of Oct 4, you can sell covered calls on SMITH & NEPHEW 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):

SMITH & NEPHEW (SNN)
Bid Ask Last Change Volume P/E Market Cap
34.54 36.16 35.42 +0.12 235K 22 15B

SNN Dividend-Like Income Using Covered Calls

With SNN at 35.42, 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% 1.06 0.3
5% 1.77 0.5
10% 3.54 1.0

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 SNN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 40.00 0.65 214 0.3 3.84 (10.8%)

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