SCCO Dividend

Although SCCO has a dividend of 0.70 with an ex-dividend date of May 2, you can sell covered calls on Southern Copper Corporation 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):

Southern Copper Corporation (SCCO)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
93.00	94.00	93.82	-0.46	995K	22	75B

SCCO Dividend-Like Income Using Covered Calls

With SCCO at 93.82, 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%	2.81	0.8
5%	4.69	1.3
10%	9.38	2.6

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 SCCO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 16	100.00	0.75	19	3.9	6.00 (6.4%)
Jul 18	100.00	3.50	82	4.3	6.00 (6.4%)

5% Yield On SCCO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 16	100.00	0.75	19	3.9	6.00 (6.4%)
Jul 18	100.00	3.50	82	4.3	6.00 (6.4%)

10% Yield On SCCO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 16	100.00	0.75	19	3.9	6.00 (6.4%)
Jul 18	100.00	3.50	82	4.3	6.00 (6.4%)

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Want more examples? SCC Dividend | SCHA Dividend