SPGI Dividend
Although SPGI has a dividend of 0.96 with an ex-dividend date of Aug 26, 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 Fri 4:16 PM ET):
| S&P Global Inc. (SPGI) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 520.00 |
553.73 |
545.66 |
-5.44 |
1.9M |
43 |
169B |
SPGI Dividend-Like Income Using Covered Calls
With SPGI at 545.66, 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% |
16.37 |
4.5 |
| 5% |
27.28 |
7.5 |
| 10% |
54.57 |
14.9 |
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 |
| Sep 5 |
560.00 |
5.60 |
36 |
15.6 |
6.27 (1.1%) |
| Aug 8 |
555.00 |
2.00 |
8 |
25.0 |
1.27 (0.2%) |
| 5% Yield On SPGI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 5 |
560.00 |
5.60 |
36 |
15.6 |
6.27 (1.1%) |
| Aug 8 |
555.00 |
2.00 |
8 |
25.0 |
1.27 (0.2%) |
| 10% Yield On SPGI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 5 |
560.00 |
5.60 |
36 |
15.6 |
6.27 (1.1%) |
| Aug 8 |
555.00 |
2.00 |
8 |
25.0 |
1.27 (0.2%) |
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