SRG Dividend Type Payments
Although SRG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SERITAGE GROWTH PROPERTIES CL 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 CL A (SRG) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 42.00 |
42.08 |
42.06 |
-0.60 |
49K |
- |
2.4B |
SRG Dividend-Like Income Using Covered Calls
With SRG at 42.06, 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% |
1.26 |
0.3 |
| 5% |
2.10 |
0.6 |
| 10% |
4.21 |
1.2 |
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 |
| Oct 19 |
45.00 |
0.10 |
3 |
3.3 |
2.92 (6.9%) |
| Nov 16 |
48.00 |
0.15 |
31 |
0.5 |
5.92 (14.1%) |
| 5% Yield On SRG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 19 |
45.00 |
0.10 |
3 |
3.3 |
2.92 (6.9%) |
| Nov 16 |
47.00 |
0.20 |
31 |
0.6 |
4.92 (11.7%) |
| 10% Yield On SRG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 19 |
45.00 |
0.10 |
3 |
3.3 |
2.92 (6.9%) |
| Nov 16 |
45.00 |
0.60 |
31 |
1.9 |
2.92 (6.9%) |
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