SLF Dividend
Although SLF has a dividend of 0.59 with an ex-dividend date of Feb 26, you can sell covered calls on Sun Life Financial Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 12:10 PM ET):
| Sun Life Financial Inc. (SLF) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 55.34 | 55.38 | 55.46 | +0.85 | 159K | 15 | 33B |
SLF Dividend-Like Income Using Covered Calls
With SLF at 55.46, 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% | 1.66 | 0.5 |
| 5% | 2.77 | 0.8 |
| 10% | 5.55 | 1.5 |
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:
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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. | ZETA dividend | |
| 3. | FXI dividend | 8. | QQQ dividend | 3. | WOLF dividend | |
| 4. | EEM dividend | 9. | SLV dividend | 4. | HIMS dividend | |
| 5. | KWEB dividend | 10. | TLT dividend | 5. | RGTI dividend | |
Want more examples? SLDR Dividend | SLG Dividend
