SWK Dividend

Stanley Black & Decker, Inc dividend

Although SWK has a dividend of 0.66 with an ex-dividend date of Mar 4, 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 Fri 4:16 PM ET):

Stanley Black & Decker, Inc (SWK)
Bid Ask Last Change Volume P/E Market Cap
129.65 136.99 136.39 +3.31 978K 20 20B

SWK Dividend-Like Income Using Covered Calls

With SWK at 136.39, here's a table showing how big the annual "dividend" (ie. 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% 4.09 1.1
5% 6.82 1.9
10% 13.64 3.7

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
Feb 22 141.00 0.10 8 1.3 4.01 (2.9%)
Mar 1 144.00 0.20 15 1.3 7.01 (5.1%)
5% Yield On SWK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 22 140.00 0.25 8 3.1 3.01 (2.2%)
Mar 1 143.00 0.30 15 2.0 6.01 (4.4%)
10% Yield On SWK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 22 139.00 0.65 8 8.1 2.01 (1.5%)
Mar 1 141.00 0.65 15 4.3 4.01 (2.9%)

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