SFNC Dividend

Simmons First National Corporation dividend

Although SFNC has a dividend of 0.21 with an ex-dividend date of Mar 14, you can sell covered calls on Simmons First National Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 10:00 AM ET):

Simmons First National Corporation (SFNC)
Bid Ask Last Change Volume P/E Market Cap
19.79 19.82 19.77 +0.09 51K 19 2.5B

SFNC Dividend-Like Income Using Covered Calls

With SFNC at 19.77, 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% 0.59 0.2
5% 0.99 0.3
10% 1.98 0.5

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 SFNC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 20.00 0.35 37 0.9 0.18 (0.9%)
5% Yield On SFNC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 20.00 0.35 37 0.9 0.18 (0.9%)
10% Yield On SFNC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 20.00 0.35 37 0.9 0.18 (0.9%)

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