STX Dividend Type Payments
Although STX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Seagate Technology Holdings PLC - Ordinary Shares (Ireland) to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
Seagate Technology Holdings PLC - Ordinary Shares (Ireland) (STX) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
90.81 | 93.50 | 93.05 | -1.53 | 3.1M | - | 20B |
STX Dividend-Like Income Using Covered Calls
With STX at 93.05, 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% | 2.79 | 0.8 |
5% | 4.65 | 1.3 |
10% | 9.31 | 2.5 |
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 STX Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 5 | 100.00 | 0.14 | 9 | 1.6 | 6.50 (7.0%) | |
Apr 12 | 100.00 | 0.40 | 16 | 2.5 | 6.50 (7.0%) |
5% Yield On STX Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 5 | 100.00 | 0.14 | 9 | 1.6 | 6.50 (7.0%) | |
Apr 12 | 100.00 | 0.40 | 16 | 2.5 | 6.50 (7.0%) |
10% Yield On STX Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 5 | 94.00 | 1.18 | 9 | 13.1 | 0.50 (0.5%) | |
Apr 12 | 94.00 | 1.74 | 16 | 10.9 | 0.50 (0.5%) |
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Top 10 Open Interest For Apr 19 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | TLT dividend | 1. | MRNS dividend | |
2. | SPY dividend | 7. | HYG dividend | 2. | LUNR dividend | |
3. | QQQ dividend | 8. | AAPL dividend | 3. | SOUN dividend | |
4. | FXI dividend | 9. | EEM dividend | 4. | CLSK dividend | |
5. | SLV dividend | 10. | TSLA dividend | 5. | CIFR dividend |
Want more examples? STWD Dividend | STXS Dividend