STX Dividend
Although STX has a dividend of 0.74 with an ex-dividend date of Mar 25, 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 Fri 2:50 PM ET):
| Seagate Technology Holdings PLC - Ordinary Shares (Ireland) (STX) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 429.75 | 429.98 | 429.93 | +24.48 | 2.5M | 46 | 88B |
STX Dividend-Like Income Using Covered Calls
With STX at 429.93, 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% | 12.90 | 3.5 |
| 5% | 21.50 | 5.9 |
| 10% | 42.99 | 11.8 |
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 | |
| Mar 6 | 430.00 | 35.10 | 29 | 121.0 | 0.02 (0.0%) | |
| Feb 13 | 430.00 | 17.40 | 8 | 217.5 | 0.02 (0.0%) | |
| 5% Yield On STX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 6 | 430.00 | 35.10 | 29 | 121.0 | 0.02 (0.0%) | |
| Feb 13 | 430.00 | 17.40 | 8 | 217.5 | 0.02 (0.0%) | |
| 10% Yield On STX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 6 | 430.00 | 35.10 | 29 | 121.0 | 0.02 (0.0%) | |
| Feb 13 | 430.00 | 17.40 | 8 | 217.5 | 0.02 (0.0%) | |
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| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | QQQ dividend | 1. | BILL dividend | |
| 2. | KWEB dividend | 7. | SPY dividend | 2. | UAMY dividend | |
| 3. | NVDA dividend | 8. | EWZ dividend | 3. | CLSK dividend | |
| 4. | IBIT dividend | 9. | TLT dividend | 4. | CIEN dividend | |
| 5. | GLD dividend | 10. | INTC dividend | 5. | NET dividend | |
Want more examples? STWD Dividend | STXS Dividend
