STC Dividend Type Payments

Stewart Information Services Corp dividend

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

Stewart Information Services Corp (STC)
Bid Ask Last Change Volume P/E Market Cap
42.86 42.88 42.86 +0.14 99K 21 1.0B

STC Dividend-Like Income Using Covered Calls

With STC at 42.86, 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% 1.29 0.4
5% 2.14 0.6
10% 4.29 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 STC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 45.00 0.25 53 0.5 2.12 (4.9%)
Aug 16 45.00 1.00 144 0.7 2.12 (4.9%)
5% Yield On STC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 45.00 1.00 144 0.7 2.12 (4.9%)
Nov 15 45.00 1.65 235 0.7 2.12 (4.9%)

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