STBA Dividend
Although STBA has a dividend of 0.36 with an ex-dividend date of Feb 12, you can sell covered calls on S&T Bancorp, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 10:35 AM ET):
| S&T Bancorp, Inc. (STBA) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 44.37 | 44.47 | 44.42 | +0.29 | 33K | 13 | 1.7B |
STBA Dividend-Like Income Using Covered Calls
With STBA at 44.42, 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% | 1.33 | 0.4 |
| 5% | 2.22 | 0.6 |
| 10% | 4.44 | 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 STBA Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 50.00 | 0.30 | 68 | 0.4 | 5.53 (12.4%) | |
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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. | NVDA dividend | 7. | SPY dividend | 2. | PINS dividend | |
| 3. | KWEB dividend | 8. | EWZ dividend | 3. | QS dividend | |
| 4. | IBIT dividend | 9. | TLT dividend | 4. | RIVN dividend | |
| 5. | GLD dividend | 10. | CORZ dividend | 5. | CRML dividend | |
Want more examples? STAG Dividend | STC Dividend
