SWX Dividend

Southwest Gas Holdings, Inc dividend

Although SWX has a dividend of 0.52 with an ex-dividend date of Feb 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 Mon 4:16 PM ET):

Southwest Gas Holdings, Inc (SWX)
Bid Ask Last Change Volume P/E Market Cap
76.02 81.00 81.00 +0.24 214K - 0.0B

SWX Dividend-Like Income Using Covered Calls

With SWX at 81.00, 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% 2.43 0.7
5% 4.05 1.1
10% 8.10 2.2

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
Dec 21 85.00 0.20 12 1.7 4.00 (4.9%)
Jan 18 85.00 1.10 40 2.8 4.00 (4.9%)
5% Yield On SWX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 85.00 0.20 12 1.7 4.00 (4.9%)
Jan 18 85.00 1.10 40 2.8 4.00 (4.9%)
10% Yield On SWX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 85.00 1.10 40 2.8 4.00 (4.9%)

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