STEP Dividend Type Payments
Although STEP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on StepStone Group Inc. - Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| StepStone Group Inc. - Class A (STEP) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 23.55 | 60.00 | 54.88 | -0.46 | 390K | - | 6.4B |
STEP Dividend-Like Income Using Covered Calls
With STEP at 54.88, 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% | 1.65 | 0.5 |
| 5% | 2.74 | 0.8 |
| 10% | 5.49 | 1.5 |
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 STEP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 19 | 60.00 | 0.60 | 87 | 0.7 | 0.00 (0.0%) | |
| Dec 19 | 60.00 | 2.00 | 178 | 1.1 | 0.00 (0.0%) | |
| 5% Yield On STEP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 60.00 | 2.00 | 178 | 1.1 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | ALT dividend | |
| 2. | SLV dividend | 7. | IWM dividend | 2. | COGT dividend | |
| 3. | SPY dividend | 8. | AAPL dividend | 3. | CELC dividend | |
| 4. | GLD dividend | 9. | FXI dividend | 4. | IREN dividend | |
| 5. | TLT dividend | 10. | QQQ dividend | 5. | CAPR dividend | |
Want more examples? STE Dividend | STIM Dividend
