SAP Dividend Type Payments

SAP SE ADS dividend

Although SAP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SAP SE ADS 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):

SAP SE ADS (SAP)
Bid Ask Last Change Volume P/E Market Cap
233.67 255.46 248.86 +0.96 959K 93 311B

SAP Dividend-Like Income Using Covered Calls

With SAP at 248.86, 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% 7.47 2.0
5% 12.44 3.4
10% 24.89 6.8

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 SAP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 17 260.00 1.95 26 7.5 4.54 (1.8%)
Dec 19 260.00 24.60 362 6.8 4.54 (1.8%)
5% Yield On SAP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 17 260.00 1.95 26 7.5 4.54 (1.8%)
Dec 19 260.00 24.60 362 6.8 4.54 (1.8%)
10% Yield On SAP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 17 260.00 1.95 26 7.5 4.54 (1.8%)
Jun 20 260.00 13.80 180 7.7 4.54 (1.8%)

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Want more examples? SANW Dividend | SASR Dividend