SQM Dividend Type Payments

Sociedad Quimica y Minera S.A. dividend

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 Mon 4:16 PM ET):

Sociedad Quimica y Minera S.A. (SQM)
Bid Ask Last Change Volume P/E Market Cap
58.51 61.49 60.44 -0.82 1.0M 37 20B

SQM Dividend-Like Income Using Covered Calls

With SQM at 60.44, 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% 1.81 0.5
5% 3.02 0.8
10% 6.04 1.7

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
Dec 19 62.50 1.10 12 9.2 1.01 (1.7%)
Jan 16 62.50 2.50 40 6.3 1.01 (1.7%)
5% Yield On SQM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 62.50 1.10 12 9.2 1.01 (1.7%)
Jan 16 62.50 2.50 40 6.3 1.01 (1.7%)
10% Yield On SQM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 62.50 1.10 12 9.2 1.01 (1.7%)
Jan 16 62.50 2.50 40 6.3 1.01 (1.7%)

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