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 Mon 1:40 PM ET):
| SBA Communications Corporation - Class A (SBAC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 213.07 | 213.27 | 213.18 | +0.18 | 447K | 34 | 23B |
SBAC Dividend-Like Income Using Covered Calls
With SBAC at 213.18, 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% | 6.40 | 1.8 |
| 5% | 10.66 | 2.9 |
| 10% | 21.32 | 5.8 |
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 SBAC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 220.00 | 4.60 | 53 | 8.7 | 6.73 (3.2%) | |
| Sep 19 | 220.00 | 13.20 | 208 | 6.3 | 6.73 (3.2%) | |
| 5% Yield On SBAC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 220.00 | 4.60 | 53 | 8.7 | 6.73 (3.2%) | |
| Sep 19 | 220.00 | 13.20 | 208 | 6.3 | 6.73 (3.2%) | |
| 10% Yield On SBAC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 220.00 | 4.60 | 53 | 8.7 | 6.73 (3.2%) | |
| Sep 19 | 220.00 | 13.20 | 208 | 6.3 | 6.73 (3.2%) | |
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| Top 10 Open Interest For Mar 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | LUNR dividend | |
| 2. | SPY dividend | 7. | INTC dividend | 2. | FUBO dividend | |
| 3. | FXI dividend | 8. | QQQ dividend | 3. | HIMS dividend | |
| 4. | EEM dividend | 9. | SLV dividend | 4. | WOLF dividend | |
| 5. | KWEB dividend | 10. | TLT dividend | 5. | APLD dividend | |
Want more examples? SB Dividend | SBB Dividend
