SWK Dividend Type Payments
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 Fri 10:45 AM ET):
Stanley Black & Decker, Inc. (SWK) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
89.76 | 89.82 | 89.80 | +0.97 | 234K | - | 14B |
SWK Dividend-Like Income Using Covered Calls
With SWK at 89.80, 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% | 2.69 | 0.7 |
5% | 4.49 | 1.2 |
10% | 8.98 | 2.5 |
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 | |
May 17 | 100.00 | 0.35 | 22 | 1.6 | 10.18 (11.3%) | |
Jun 21 | 100.00 | 0.95 | 57 | 1.7 | 10.18 (11.3%) |
5% Yield On SWK Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 100.00 | 0.35 | 22 | 1.6 | 10.18 (11.3%) | |
Jun 21 | 100.00 | 0.95 | 57 | 1.7 | 10.18 (11.3%) |
10% Yield On SWK Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 90.00 | 3.10 | 22 | 14.1 | 0.18 (0.2%) | |
Jun 21 | 90.00 | 4.10 | 57 | 7.2 | 0.18 (0.2%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | EEM dividend | 1. | ENVX dividend | |
2. | HYG dividend | 7. | KWEB dividend | 2. | WOLF dividend | |
3. | QQQ dividend | 8. | SLV dividend | 3. | FSLY dividend | |
4. | SPY dividend | 9. | TSLA dividend | 4. | DJT dividend | |
5. | FXI dividend | 10. | NVDA dividend | 5. | CGC dividend |
Want more examples? SWI Dividend | SWKS Dividend