STX Dividend
Although STX has a dividend of 0.72 with an ex-dividend date of Sep 30, 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 4:16 PM ET):
| Seagate Technology Holdings PLC - Ordinary Shares (Ireland) (STX) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 154.60 | 154.66 | 154.81 | -2.20 | 3.8M | 23 | 33B |
STX Dividend-Like Income Using Covered Calls
With STX at 154.81, 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% | 4.64 | 1.3 |
| 5% | 7.74 | 2.1 |
| 10% | 15.48 | 4.2 |
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 STX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 5 | 155.00 | 5.80 | 36 | 16.1 | 0.34 (0.2%) | |
| Aug 8 | 155.00 | 3.10 | 8 | 38.8 | 0.34 (0.2%) | |
| 5% Yield On STX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 5 | 155.00 | 5.80 | 36 | 16.1 | 0.34 (0.2%) | |
| Aug 8 | 155.00 | 3.10 | 8 | 38.8 | 0.34 (0.2%) | |
| 10% Yield On STX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 5 | 155.00 | 5.80 | 36 | 16.1 | 0.34 (0.2%) | |
| Aug 8 | 155.00 | 3.10 | 8 | 38.8 | 0.34 (0.2%) | |
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| Top 10 Open Interest For Aug 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | IBIT dividend | 1. | UPST dividend | |
| 2. | NVDA dividend | 7. | TSLA dividend | 2. | PTON dividend | |
| 3. | GLD dividend | 8. | QQQ dividend | 3. | APPS dividend | |
| 4. | IWM dividend | 9. | AMZN dividend | 4. | QBTS dividend | |
| 5. | SPY dividend | 10. | AAPL dividend | 5. | LYFT dividend | |
Want more examples? STWD Dividend | STXS Dividend
