SBAC Dividend Type Payments

SBA Communications Corporation - Class A dividend

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
216.13 231.00 221.09 +2.62 785K 35 24B

SBAC Dividend-Like Income Using Covered Calls

With SBAC at 221.09, 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% 6.63 1.8
5% 11.05 3.0
10% 22.11 6.1

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 SBAC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 230.00 2.30 36 3.6 0.00 (0.0%)
Jan 17 230.00 4.70 64 5.8 0.00 (0.0%)
5% Yield On SBAC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 230.00 2.30 36 3.6 0.00 (0.0%)
Jan 17 230.00 4.70 64 5.8 0.00 (0.0%)

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Want more examples? SB Dividend | SBB Dividend