SYY Dividend

Sysco Corporation dividend

Although SYY has a dividend of 0.54 with an ex-dividend date of Jul 3, you can sell covered calls on Sysco Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

Sysco Corporation (SYY)
Bid Ask Last Change Volume P/E Market Cap
75.00 78.00 77.68 +0.32 2.8M 20 38B

SYY Dividend-Like Income Using Covered Calls

With SYY at 77.68, here's a table showing how big the annual "dividend" (i.e. 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% 2.33 0.6
5% 3.88 1.1
10% 7.77 2.1

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
Aug 15 80.00 0.40 45 0.9 2.00 (2.6%)
Jul 18 80.00 0.15 17 0.9 2.00 (2.6%)
5% Yield On SYY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 82.50 0.55 45 1.2 4.50 (5.8%)
Sep 19 80.00 1.70 80 2.1 2.00 (2.6%)

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