SSTK Dividend

Although SSTK has a dividend of 0.36 with an ex-dividend date of Mar 5, you can sell covered calls on Shutterstock, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

Shutterstock, Inc. (SSTK)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
18.00	18.99	18.68	+0.74	378K	11	0.6B

SSTK Dividend-Like Income Using Covered Calls

With SSTK at 18.68, 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%	0.56	0.2
5%	0.93	0.3
10%	1.87	0.5

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 SSTK Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Feb 20	20.00	0.10	15	0.7	1.01 (5.4%)
Mar 20	25.00	0.10	43	0.2	6.01 (32.2%)

5% Yield On SSTK Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Feb 20	20.00	0.10	15	0.7	1.01 (5.4%)
May 15	20.00	1.00	99	1.0	1.01 (5.4%)

10% Yield On SSTK Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Feb 20	20.00	0.10	15	0.7	1.01 (5.4%)
May 15	20.00	1.00	99	1.0	1.01 (5.4%)

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Top 10 Open Interest For Feb 20 Expiration				Top 5 High Yield
1.	SLV dividend	6.	QQQ dividend	1.	OCUL dividend
2.	KWEB dividend	7.	SPY dividend	2.	APLD dividend
3.	NVDA dividend	8.	EWZ dividend	3.	AXTI dividend
4.	IBIT dividend	9.	TLT dividend	4.	U dividend
5.	GLD dividend	10.	INTC dividend	5.	QS dividend

Want more examples? SSSS Dividend | SSUS Dividend