SPG Dividend Type Payments

SIMON PROPERTY GROUP dividend

Although SPG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SIMON PROPERTY GROUP to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 11:40 AM ET):

SIMON PROPERTY GROUP (SPG)
Bid Ask Last Change Volume P/E Market Cap
172.25 172.34 172.29 -1.80 353K 24 54B

SPG Dividend-Like Income Using Covered Calls

With SPG at 172.29, 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% 5.17 1.4
5% 8.61 2.4
10% 17.23 4.7

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 SPG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 175.00 0.33 3 11.0 2.66 (1.5%)
Nov 16 185.00 0.88 31 2.8 12.66 (7.3%)
5% Yield On SPG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 175.00 0.33 3 11.0 2.66 (1.5%)
Nov 16 185.00 0.88 31 2.8 12.66 (7.3%)
10% Yield On SPG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 175.00 0.33 3 11.0 2.66 (1.5%)
Nov 16 180.00 1.89 31 6.1 7.66 (4.4%)

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Want more examples? SPFF Dividend | SPGI Dividend