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
29.37 30.00 29.37 -0.10 214K 12 1.3B

SPXC Dividend-Like Income Using Covered Calls

With SPXC at 29.37, 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% 0.88 0.2
5% 1.47 0.4
10% 2.94 0.8

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
Nov 16 30.00 0.10 4 2.5 0.00 (0.0%)
Dec 21 30.00 0.75 39 1.9 0.00 (0.0%)
5% Yield On SPXC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 30.00 0.10 4 2.5 0.00 (0.0%)
Dec 21 30.00 0.75 39 1.9 0.00 (0.0%)
10% Yield On SPXC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 30.00 0.10 4 2.5 0.00 (0.0%)
Dec 21 30.00 0.75 39 1.9 0.00 (0.0%)

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Top 10 Open Interest For Nov 16 Expiration     Top 5 High Yield
1.SPY dividend 6.PBR dividend   1.TLRY dividend
2.EEM dividend 7.IWM dividend   2.NVDA dividend
3.EWZ dividend 8.FXI dividend   3.M dividend
4.SPX dividend 9.BAC dividend   4.AMRN dividend
5.QQQ dividend 10.VXX dividend   5.CGC dividend

Want more examples? SPXB Dividend | SPXE Dividend