STLD Dividend

STEEL DYNAMICS dividend

Although STLD has a dividend of 0.19 with an ex-dividend date of Sep 27, you can sell covered calls on STEEL DYNAMICS 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):

STEEL DYNAMICS (STLD)
Bid Ask Last Change Volume P/E Market Cap
43.25 46.00 45.10 +0.23 1.9M 10 11B

STLD Dividend-Like Income Using Covered Calls

With STLD at 45.10, 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% 1.35 0.4
5% 2.26 0.6
10% 4.51 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 STLD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 49.00 0.15 32 0.5 3.00 (6.7%)
Oct 19 50.00 0.40 60 0.7 4.00 (8.9%)
5% Yield On STLD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 48.00 0.30 32 0.9 2.00 (4.4%)
Oct 19 50.00 0.40 60 0.7 4.00 (8.9%)
10% Yield On STLD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 47.00 0.55 32 1.7 1.00 (2.2%)
Oct 19 48.00 0.80 60 1.3 2.00 (4.4%)

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Want more examples? STL Dividend | STM Dividend