SWX Dividend

Although SWX has a dividend of 0.55 with an ex-dividend date of Aug 14, you can sell covered calls on Southwest Gas Holdings, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

Southwest Gas Holdings, Inc (SWX)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
88.50	94.00	90.80	+0.33	150K	24	4.8B

SWX Dividend-Like Income Using Covered Calls

With SWX at 90.80, 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%	2.72	0.7
5%	4.54	1.2
10%	9.08	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 SWX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 16	95.00	0.70	53	1.3	1.00 (1.1%)
Oct 18	95.00	1.75	116	1.5	1.00 (1.1%)

5% Yield On SWX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 16	95.00	0.70	53	1.3	1.00 (1.1%)
Oct 18	95.00	1.75	116	1.5	1.00 (1.1%)

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Want more examples? SWN Dividend | SXC Dividend