SYY Dividend

Sysco Corp dividend

Although SYY has a dividend of 0.39 with an ex-dividend date of Jan 3, you can sell covered calls on Sysco Corp 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):

Sysco Corp (SYY)
Bid Ask Last Change Volume P/E Market Cap
64.37 66.16 65.98 +0.43 2.4M - 0.0B

SYY Dividend-Like Income Using Covered Calls

With SYY at 65.98, 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% 1.98 0.5
5% 3.30 0.9
10% 6.60 1.8

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 SYY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 68.00 0.10 9 1.1 1.84 (2.8%)
Dec 28 68.50 0.10 16 0.6 2.34 (3.5%)
5% Yield On SYY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 68.00 0.10 9 1.1 1.84 (2.8%)
Dec 28 68.00 0.15 16 0.9 1.84 (2.8%)
10% Yield On SYY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 67.00 0.30 9 3.3 0.84 (1.3%)
Dec 28 67.50 0.30 16 1.9 1.34 (2.0%)

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