STNE Dividend Type Payments
Although STNE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on StoneCo Ltd. - Class A Common Share to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
StoneCo Ltd. - Class A Common Share (STNE) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
16.67 |
16.77 |
16.73 |
+0.46 |
3.3M |
17 |
5.1B |
STNE Dividend-Like Income Using Covered Calls
With STNE at 16.73, 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% |
0.50 |
0.1 |
5% |
0.84 |
0.2 |
10% |
1.67 |
0.5 |
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 STNE Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Jun 7 |
17.00 |
0.95 |
36 |
2.6 |
0.23 (1.4%) |
May 10 |
17.00 |
0.20 |
8 |
2.5 |
0.23 (1.4%) |
5% Yield On STNE Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Jun 7 |
17.00 |
0.95 |
36 |
2.6 |
0.23 (1.4%) |
May 10 |
17.00 |
0.20 |
8 |
2.5 |
0.23 (1.4%) |
10% Yield On STNE Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Jun 7 |
17.00 |
0.95 |
36 |
2.6 |
0.23 (1.4%) |
May 10 |
17.00 |
0.20 |
8 |
2.5 |
0.23 (1.4%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial