SRG Dividend Type Payments

Although SRG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Seritage Growth Properties Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 11:20 AM ET):

Seritage Growth Properties Class A (SRG)
Bid Ask Last Change Volume P/E Market Cap
3.25 3.28 3.25 -0.01 7K - 0.2B

SRG Dividend-Like Income Using Covered Calls

With SRG at 3.25, 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% 0.10 0.0
5% 0.16 0.0
10% 0.33 0.1

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 SRG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 4.00 0.05 31 0.2 0.72 (22.2%)
Oct 17 4.00 0.15 94 0.2 0.72 (22.2%)
5% Yield On SRG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 4.00 0.05 31 0.2 0.72 (22.2%)
Oct 17 4.00 0.15 94 0.2 0.72 (22.2%)
10% Yield On SRG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 4.00 0.05 31 0.2 0.72 (22.2%)
Oct 17 4.00 0.15 94 0.2 0.72 (22.2%)

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