SWK Dividend Type Payments

Stanley Black & Decker, Inc. dividend

Although SWK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Stanley Black & Decker, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 9:50 AM ET):

Stanley Black & Decker, Inc. (SWK)
Bid Ask Last Change Volume P/E Market Cap
75.23 75.42 75.27 -0.41 71K 26 12B

SWK Dividend-Like Income Using Covered Calls

With SWK at 75.27, 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% 2.26 0.6
5% 3.76 1.0
10% 7.53 2.1

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 SWK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 77.50 0.45 5 9.0 2.08 (2.8%)
Jan 16 77.50 2.00 33 6.1 2.08 (2.8%)
5% Yield On SWK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 77.50 0.45 5 9.0 2.08 (2.8%)
Jan 16 77.50 2.00 33 6.1 2.08 (2.8%)
10% Yield On SWK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 77.50 0.45 5 9.0 2.08 (2.8%)
Jan 16 77.50 2.00 33 6.1 2.08 (2.8%)

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