SPGI Dividend
Although SPGI has a dividend of 0.96 with an ex-dividend date of Nov 25, you can sell covered calls on S&P Global Inc. 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):
| S&P Global Inc. (SPGI) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 493.00 |
501.99 |
499.21 |
+2.19 |
2.1M |
36 |
151B |
SPGI Dividend-Like Income Using Covered Calls
With SPGI at 499.21, 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% |
14.98 |
4.1 |
| 5% |
24.96 |
6.8 |
| 10% |
49.92 |
13.7 |
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 SPGI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
500.00 |
11.70 |
32 |
30.3 |
0.00 (0.0%) |
| Nov 7 |
500.00 |
4.30 |
4 |
57.8 |
0.00 (0.0%) |
| 5% Yield On SPGI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
500.00 |
11.70 |
32 |
30.3 |
0.00 (0.0%) |
| Nov 7 |
500.00 |
4.30 |
4 |
57.8 |
0.00 (0.0%) |
| 10% Yield On SPGI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
500.00 |
11.70 |
32 |
30.3 |
0.00 (0.0%) |
| Nov 7 |
500.00 |
4.30 |
4 |
57.8 |
0.00 (0.0%) |
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