SBAC Dividend Type Payments
Although SBAC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SBA Communications Corporation - Class A 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):
| SBA Communications Corporation - Class A (SBAC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 203.75 | 225.00 | 203.57 | +5.33 | 2.1M | 31 | 21B |
SBAC Dividend-Like Income Using Covered Calls
With SBAC at 203.57, 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% | 6.11 | 1.7 |
| 5% | 10.18 | 2.8 |
| 10% | 20.36 | 5.6 |
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 SBAC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 230.00 | 10.00 | 365 | 2.7 | 5.00 (2.5%) | |
| Jun 20 | 230.00 | 4.70 | 183 | 2.6 | 5.00 (2.5%) | |
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| Top 10 Open Interest For Jan 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | INTC dividend | 1. | RGTI dividend | |
| 2. | SLV dividend | 7. | SPY dividend | 2. | NMRA dividend | |
| 3. | AAPL dividend | 8. | TSLA dividend | 3. | HUMA dividend | |
| 4. | EEM dividend | 9. | IWM dividend | 4. | DLO dividend | |
| 5. | XLF dividend | 10. | TLT dividend | 5. | MARA dividend | |
Want more examples? SB Dividend | SBB Dividend
