SPGI Dividend Type Payments
Although SPGI has no upcoming (meaning, Board-approved and announced) dividends, 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 Mon 9:50 AM ET):
| S&P Global Inc. (SPGI) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 507.08 |
507.80 |
507.44 |
+5.95 |
50K |
39 |
154B |
SPGI Dividend-Like Income Using Covered Calls
With SPGI at 507.44, 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% |
15.22 |
4.2 |
| 5% |
25.37 |
7.0 |
| 10% |
50.74 |
13.9 |
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 |
| Jul 3 |
507.50 |
5.20 |
18 |
27.2 |
0.00 (0.0%) |
| Jul 11 |
510.00 |
5.60 |
26 |
21.5 |
2.20 (0.4%) |
| 5% Yield On SPGI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jul 3 |
507.50 |
5.20 |
18 |
27.2 |
0.00 (0.0%) |
| Jul 11 |
510.00 |
5.60 |
26 |
21.5 |
2.20 (0.4%) |
| 10% Yield On SPGI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jul 3 |
507.50 |
5.20 |
18 |
27.2 |
0.00 (0.0%) |
| Jul 11 |
510.00 |
5.60 |
26 |
21.5 |
2.20 (0.4%) |
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