SFL Dividend
Although SFL has a dividend of 0.27 with an ex-dividend date of Mar 12, you can sell covered calls on SFL Corporation Ltd to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| SFL Corporation Ltd (SFL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 8.50 | 8.63 | 8.52 | -0.22 | 2.7M | 8.7 | 1.1B |
SFL Dividend-Like Income Using Covered Calls
With SFL at 8.52, 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% | 0.26 | 0.1 |
| 5% | 0.43 | 0.1 |
| 10% | 0.85 | 0.2 |
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 SFL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 10.00 | 0.20 | 284 | 0.1 | 1.37 (16.1%) | |
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| Top 10 Open Interest For Mar 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | QQQ dividend | 1. | DG dividend | |
| 2. | SPY dividend | 7. | KWEB dividend | 2. | SMR dividend | |
| 3. | IWM dividend | 8. | INTC dividend | 3. | S dividend | |
| 4. | FXI dividend | 9. | TSLA dividend | 4. | WOLF dividend | |
| 5. | EEM dividend | 10. | SLV dividend | 5. | OKLO dividend | |
Want more examples? SFIX Dividend | SFM Dividend
