SR Dividend Type Payments
Although SR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Spire Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| Spire Inc. (SR) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 76.59 | 85.78 | 82.13 | +0.76 | 436K | 18 | 4.9B |
SR Dividend-Like Income Using Covered Calls
With SR at 82.13, 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% | 2.46 | 0.7 |
| 5% | 4.11 | 1.1 |
| 10% | 8.21 | 2.3 |
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 SR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 20 | 90.00 | 0.70 | 100 | 0.7 | 4.22 (5.1%) | |
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| Top 10 Open Interest For Dec 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | ONDS dividend | |
| 2. | SPY dividend | 7. | TLT dividend | 2. | ASTS dividend | |
| 3. | QQQ dividend | 8. | SLV dividend | 3. | SOUN dividend | |
| 4. | IWM dividend | 9. | NFLX dividend | 4. | NKTR dividend | |
| 5. | IBIT dividend | 10. | FXI dividend | 5. | OMER dividend | |
Want more examples? SQQQ Dividend | SRCE Dividend
