SPGI Dividend
Although SPGI has a dividend of 0.91 with an ex-dividend date of Nov 26, you can sell covered calls on S&P Global Inc. 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):
| S&P Global Inc. (SPGI) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 498.00 |
506.50 |
503.00 |
-0.29 |
1.2M |
44 |
156B |
SPGI Dividend-Like Income Using Covered Calls
With SPGI at 503.00, 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% |
15.09 |
4.1 |
| 5% |
25.15 |
6.9 |
| 10% |
50.30 |
13.8 |
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 SPGI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 6 |
505.00 |
6.00 |
19 |
23.7 |
0.00 (0.0%) |
| Dec 13 |
510.00 |
6.40 |
26 |
24.6 |
3.50 (0.7%) |
| 5% Yield On SPGI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 6 |
505.00 |
6.00 |
19 |
23.7 |
0.00 (0.0%) |
| Dec 13 |
510.00 |
6.40 |
26 |
24.6 |
3.50 (0.7%) |
| 10% Yield On SPGI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 6 |
505.00 |
6.00 |
19 |
23.7 |
0.00 (0.0%) |
| Dec 13 |
510.00 |
6.40 |
26 |
24.6 |
3.50 (0.7%) |
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