SNOW Dividend Type Payments
Although SNOW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Snowflake Inc. Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
Snowflake Inc. Class A (SNOW) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
159.02 | 159.32 | 159.32 | +1.55 | 3.6M | - | 101B |
SNOW Dividend-Like Income Using Covered Calls
With SNOW at 159.32, 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% | 4.78 | 1.3 |
5% | 7.97 | 2.2 |
10% | 15.93 | 4.4 |
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 SNOW Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jun 7 | 160.00 | 9.75 | 36 | 27.1 | 0.68 (0.4%) | |
May 10 | 160.00 | 3.55 | 8 | 44.4 | 0.68 (0.4%) |
5% Yield On SNOW Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jun 7 | 160.00 | 9.75 | 36 | 27.1 | 0.68 (0.4%) | |
May 10 | 160.00 | 3.55 | 8 | 44.4 | 0.68 (0.4%) |
10% Yield On SNOW Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jun 7 | 160.00 | 9.75 | 36 | 27.1 | 0.68 (0.4%) | |
May 10 | 160.00 | 3.55 | 8 | 44.4 | 0.68 (0.4%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | EEM dividend | 1. | BYND dividend | |
2. | QQQ dividend | 7. | TSLA dividend | 2. | HIMS dividend | |
3. | HYG dividend | 8. | SLV dividend | 3. | BYON dividend | |
4. | SPY dividend | 9. | TLT dividend | 4. | UPST dividend | |
5. | FXI dividend | 10. | AMZN dividend | 5. | RIVN dividend |
Want more examples? SNN Dividend | SNPE Dividend