SVC Dividend Type Payments
Although SVC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Service Properties Trust - Shares of Beneficial Interest 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):
| Service Properties Trust - Shares of Beneficial Interest (SVC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 5.73 | 6.07 | 5.73 | -0.20 | 935K | - | 1.0B |
SVC Dividend-Like Income Using Covered Calls
With SVC at 5.73, 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% | 0.17 | 0.0 |
| 5% | 0.29 | 0.1 |
| 10% | 0.57 | 0.2 |
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:
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| Top 10 Open Interest For Jun 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | FXI dividend | 1. | GME dividend | |
| 2. | QQQ dividend | 7. | AAPL dividend | 2. | INSM dividend | |
| 3. | IWM dividend | 8. | EEM dividend | 3. | ALT dividend | |
| 4. | TSLA dividend | 9. | HYG dividend | 4. | CORT dividend | |
| 5. | AMZN dividend | 10. | SLV dividend | 5. | GPCR dividend | |
Want more examples? SUSL Dividend | SVM Dividend
