SPT Dividend Type Payments
Although SPT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Sprout Social, Inc - Class A 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):
| Sprout Social, Inc - Class A (SPT) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 10.86 |
10.90 |
10.89 |
-0.14 |
56K |
- |
0.7B |
SPT Dividend-Like Income Using Covered Calls
With SPT at 10.89, 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% |
0.33 |
0.1 |
| 5% |
0.54 |
0.1 |
| 10% |
1.09 |
0.3 |
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 SPT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
12.50 |
0.05 |
5 |
1.0 |
1.60 (14.7%) |
| Jan 16 |
12.50 |
0.25 |
33 |
0.8 |
1.60 (14.7%) |
| 5% Yield On SPT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
12.50 |
0.05 |
5 |
1.0 |
1.60 (14.7%) |
| Jan 16 |
12.50 |
0.25 |
33 |
0.8 |
1.60 (14.7%) |
| 10% Yield On SPT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
12.50 |
0.05 |
5 |
1.0 |
1.60 (14.7%) |
| Jan 16 |
12.50 |
0.25 |
33 |
0.8 |
1.60 (14.7%) |
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