SP Dividend Type Payments

SP PLUS CORP COMMON STOCK dividend

Although SP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SP PLUS CORP COMMON STOCK to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 11:30 AM ET):

SP PLUS CORP COMMON STOCK (SP)
Bid Ask Last Change Volume P/E Market Cap
40.00 40.20 40.20 +0.10 50K 18 0.9B

SP Dividend-Like Income Using Covered Calls

With SP at 40.20, 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% 1.21 0.3
5% 2.01 0.6
10% 4.02 1.1

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 SP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 40.00 1.05 39 2.2 0.00 (0.0%)
Oct 19 40.00 1.45 67 1.9 0.00 (0.0%)
5% Yield On SP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 40.00 1.05 39 2.2 0.00 (0.0%)
Oct 19 40.00 1.45 67 1.9 0.00 (0.0%)
10% Yield On SP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 40.00 1.05 39 2.2 0.00 (0.0%)
Oct 19 40.00 1.45 67 1.9 0.00 (0.0%)

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