SSTK Dividend Type Payments

SHUTTERSTOCK dividend

Although SSTK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SHUTTERSTOCK to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

SHUTTERSTOCK (SSTK)
Bid Ask Last Change Volume P/E Market Cap
46.00 52.80 50.81 -0.05 129K 45 1.8B

SSTK Dividend-Like Income Using Covered Calls

With SSTK at 50.81, 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% 1.52 0.4
5% 2.54 0.7
10% 5.08 1.4

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
Sep 21 57.00 0.20 33 0.6 4.20 (8.3%)
Oct 19 57.50 0.40 61 0.7 4.70 (9.3%)
5% Yield On SSTK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 54.50 0.45 33 1.4 1.70 (3.3%)
Oct 19 55.00 0.90 61 1.5 2.20 (4.3%)
10% Yield On SSTK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 55.00 0.90 61 1.5 2.20 (4.3%)
Nov 16 57.00 1.50 89 1.7 4.20 (8.3%)

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Want more examples? SSRM Dividend | SSW Dividend