SNP Dividend Type Payments

China Petroleum & Chemical Corp dividend

Although SNP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on China Petroleum & Chemical Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 2:15 PM ET):

China Petroleum & Chemical Corp (SNP)
Bid Ask Last Change Volume P/E Market Cap
66.52 66.55 66.55 +0.19 79K - 80B

SNP Dividend-Like Income Using Covered Calls

With SNP at 66.55, 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% 2.00 0.5
5% 3.33 0.9
10% 6.66 1.8

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 SNP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 70.00 0.25 33 0.8 3.45 (5.2%)
Oct 18 70.00 0.70 96 0.7 3.45 (5.2%)
5% Yield On SNP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 70.00 1.65 159 1.0 3.45 (5.2%)
Jan 17 70.00 1.95 187 1.0 3.45 (5.2%)

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Want more examples? SNN Dividend | SNPS Dividend