SPXC Dividend Type Payments

Although SPXC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPX CORP 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):

SPX CORP (SPXC)
Bid Ask Last Change Volume P/E Market Cap
7.64 34.97 34.95 -0.67 255K 18 1.5B

SPXC Dividend-Like Income Using Covered Calls

With SPXC at 34.95, 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% 1.05 0.3
5% 1.75 0.5
10% 3.50 1.0

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 SPXC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 15 35.00 0.75 25 3.0 0.03 (0.1%)
Jul 20 35.00 1.30 60 2.2 0.03 (0.1%)
5% Yield On SPXC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 15 35.00 0.75 25 3.0 0.03 (0.1%)
Jul 20 35.00 1.30 60 2.2 0.03 (0.1%)
10% Yield On SPXC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 15 35.00 0.75 25 3.0 0.03 (0.1%)
Jul 20 35.00 1.30 60 2.2 0.03 (0.1%)

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Top 10 Open Interest For Jun 15 Expiration     Top 5 High Yield
1.SPY dividend 6.QQQ dividend   1.URBN dividend
2.EEM dividend 7.BAC dividend   2.CHK dividend
3.SPX dividend 8.HYG dividend   3.UVXY dividend
4.GE dividend 9.IWM dividend   4.GPS dividend
5.XLF dividend 10.EFA dividend   5.TXMD dividend

Want more examples? SPX Dividend | SPXE Dividend