SQM Dividend Type Payments

Although SQM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Sociedad Quimica y Minera S.A. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

Sociedad Quimica y Minera S.A. (SQM)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
37.55	39.81	38.37	-1.63	1.3M	-	13B

SQM Dividend-Like Income Using Covered Calls

With SQM at 38.37, 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%	1.15	0.3
5%	1.92	0.5
10%	3.84	1.1

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 SQM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 17	40.00	1.50	49	3.1	0.19 (0.5%)
Oct 17	40.00	2.70	232	1.2	0.19 (0.5%)

5% Yield On SQM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 17	40.00	1.50	49	3.1	0.19 (0.5%)
Oct 17	40.00	2.70	232	1.2	0.19 (0.5%)

10% Yield On SQM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 17	40.00	1.50	49	3.1	0.19 (0.5%)
Oct 17	40.00	2.70	232	1.2	0.19 (0.5%)

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Want more examples? SQEW Dividend | SQNS Dividend