SATS Dividend Type Payments

EchoStar Corporation - Common stock dividend

Although SATS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on EchoStar Corporation - Common stock 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):

EchoStar Corporation - Common stock (SATS)
Bid Ask Last Change Volume P/E Market Cap
22.14 23.14 22.75 +0.14 3.6M - 6.1B

SATS Dividend-Like Income Using Covered Calls

With SATS at 22.75, 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% 0.68 0.2
5% 1.14 0.3
10% 2.28 0.6

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 SATS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 17 24.00 0.86 29 3.0 0.86 (3.8%)
Apr 17 24.00 2.73 119 2.3 0.86 (3.8%)
5% Yield On SATS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 17 24.00 0.86 29 3.0 0.86 (3.8%)
Apr 17 24.00 2.73 119 2.3 0.86 (3.8%)
10% Yield On SATS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 17 24.00 0.86 29 3.0 0.86 (3.8%)
Apr 17 24.00 2.73 119 2.3 0.86 (3.8%)

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