SWX Dividend Type Payments
Although SWX has no upcoming (meaning, Board-approved and announced) dividends, 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 Thu 4:16 PM ET):
| Southwest Gas Holdings, Inc (SWX) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 77.43 | 88.00 | 83.98 | +1.10 | 189K | 19 | 4.1B |
SWX Dividend-Like Income Using Covered Calls
With SWX at 83.98, 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% | 2.52 | 0.7 |
| 5% | 4.20 | 1.2 |
| 10% | 8.40 | 2.3 |
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 | |
| Jul 19 | 90.00 | 1.40 | 149 | 0.9 | 2.00 (2.4%) | |
| Oct 18 | 90.00 | 2.40 | 240 | 1.0 | 2.00 (2.4%) | |
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| Top 10 Open Interest For Mar 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPX dividend | 6. | EWZ dividend | 1. | Z dividend | |
| 2. | EEM dividend | 7. | GE dividend | 2. | FSLR dividend | |
| 3. | SPY dividend | 8. | LLY dividend | 3. | ROKU dividend | |
| 4. | QQQ dividend | 9. | BAC dividend | 4. | IQ dividend | |
| 5. | FXI dividend | 10. | GLD dividend | 5. | DBX dividend | |
Want more examples? SWN Dividend | SXC Dividend
