STLD Dividend
Although STLD has a dividend of 0.50 with an ex-dividend date of Mar 31, you can sell covered calls on Steel Dynamics, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 12:35 PM ET):
| Steel Dynamics, Inc. (STLD) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 134.09 | 134.32 | 134.21 | -0.86 | 514K | 14 | 20B |
STLD Dividend-Like Income Using Covered Calls
With STLD at 134.21, 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% | 4.03 | 1.1 |
| 5% | 6.71 | 1.8 |
| 10% | 13.42 | 3.7 |
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 STLD Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 135.00 | 12.30 | 166 | 7.4 | 0.68 (0.5%) | |
| May 16 | 135.00 | 8.30 | 75 | 11.1 | 0.68 (0.5%) | |
| 5% Yield On STLD Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 135.00 | 12.30 | 166 | 7.4 | 0.68 (0.5%) | |
| May 16 | 135.00 | 8.30 | 75 | 11.1 | 0.68 (0.5%) | |
| 10% Yield On STLD Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 135.00 | 12.30 | 166 | 7.4 | 0.68 (0.5%) | |
| May 16 | 135.00 | 8.30 | 75 | 11.1 | 0.68 (0.5%) | |
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| Top 10 Open Interest For Mar 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | KWEB dividend | 1. | BBAI dividend | |
| 2. | SPY dividend | 7. | QQQ dividend | 2. | GAP dividend | |
| 3. | FXI dividend | 8. | INTC dividend | 3. | EOSE dividend | |
| 4. | IWM dividend | 9. | SLV dividend | 4. | APP dividend | |
| 5. | EEM dividend | 10. | TLT dividend | 5. | CIFR dividend | |
Want more examples? STKL Dividend | STM Dividend
