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 Wed 4:16 PM ET):
| Sociedad Quimica y Minera S.A. (SQM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 38.02 | 38.68 | 38.45 | +0.50 | 1.7M | 18 | 13B |
SQM Dividend-Like Income Using Covered Calls
With SQM at 38.45, 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% | 3.85 | 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 | |
| Aug 15 | 40.00 | 0.50 | 38 | 1.3 | 1.32 (3.4%) | |
| Oct 17 | 40.00 | 1.45 | 101 | 1.4 | 1.32 (3.4%) | |
| 5% Yield On SQM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 40.00 | 0.50 | 38 | 1.3 | 1.32 (3.4%) | |
| Oct 17 | 40.00 | 1.45 | 101 | 1.4 | 1.32 (3.4%) | |
| 10% Yield On SQM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 40.00 | 0.50 | 38 | 1.3 | 1.32 (3.4%) | |
| Oct 17 | 40.00 | 1.45 | 101 | 1.4 | 1.32 (3.4%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | RARE dividend | |
| 2. | SLV dividend | 7. | AAPL dividend | 2. | TMC dividend | |
| 3. | SPY dividend | 8. | TLT dividend | 3. | CELC dividend | |
| 4. | TSLA dividend | 9. | IBIT dividend | 4. | AEVA dividend | |
| 5. | IWM dividend | 10. | QQQ dividend | 5. | PRAX dividend | |
Want more examples? SQEW Dividend | SQNS Dividend
