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 Mon 9:40 AM ET):

Sociedad Quimica y Minera S.A. (SQM)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
35.92	36.03	35.98	+0.18	40K	-	12B

SQM Dividend-Like Income Using Covered Calls

With SQM at 35.98, 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%	1.08	0.3
5%	1.80	0.5
10%	3.60	1.0

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
May 16	37.50	0.25	19	1.3	1.47 (4.1%)
Oct 17	37.50	1.55	173	0.9	1.47 (4.1%)

5% Yield On SQM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 16	37.50	0.25	19	1.3	1.47 (4.1%)
Oct 17	37.50	1.55	173	0.9	1.47 (4.1%)

10% Yield On SQM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 16	37.50	0.25	19	1.3	1.47 (4.1%)
Jul 18	37.50	1.80	82	2.2	1.47 (4.1%)

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Want more examples? SQEW Dividend | SQNS Dividend