SWX Dividend

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

SOUTHWEST GAS HOLDINGS INC (SWX)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
80.40	80.56	80.52	+1.18	127K	19	3.9B

SWX Dividend-Like Income Using Covered Calls

With SWX at 80.52, 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%	2.42	0.7
5%	4.03	1.1
10%	8.05	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
Nov 16	85.00	0.30	29	1.0	4.44 (5.5%)
Jan 18	85.00	1.25	92	1.4	4.44 (5.5%)

5% Yield On SWX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 18	85.00	1.25	92	1.4	4.44 (5.5%)

Want to increase dividends with covered calls? Sign Up For A Free Trial

Top 10 Open Interest For Nov 16 Expiration				Top 5 High Yield
1.	SPY dividend	6.	SPX dividend	1.	SNAP dividend
2.	EWZ dividend	7.	FXI dividend	2.	TWTR dividend
3.	EEM dividend	8.	VXX dividend	3.	AMRN dividend
4.	PBR dividend	9.	IWM dividend	4.	AMD dividend
5.	QQQ dividend	10.	BAC dividend	5.	UVXY dividend

Want more examples? SWN Dividend | SXC Dividend