STX Dividend
Although STX has a dividend of 0.72 with an ex-dividend date of Mar 19, you can sell covered calls on Seagate Technology Holdings PLC - Ordinary Shares (Ireland) to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 9:50 AM ET):
| Seagate Technology Holdings PLC - Ordinary Shares (Ireland) (STX) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 101.21 | 101.37 | 101.30 | +0.62 | 223K | 18 | 21B |
STX Dividend-Like Income Using Covered Calls
With STX at 101.30, 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% | 3.04 | 0.8 |
| 5% | 5.07 | 1.4 |
| 10% | 10.13 | 2.8 |
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 STX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 4 | 101.00 | 4.20 | 36 | 10.6 | 0.00 (0.0%) | |
| Mar 7 | 101.00 | 2.55 | 8 | 27.3 | 0.00 (0.0%) | |
| 5% Yield On STX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 4 | 101.00 | 4.20 | 36 | 10.6 | 0.00 (0.0%) | |
| Mar 7 | 101.00 | 2.55 | 8 | 27.3 | 0.00 (0.0%) | |
| 10% Yield On STX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 4 | 101.00 | 4.20 | 36 | 10.6 | 0.00 (0.0%) | |
| Mar 7 | 101.00 | 2.55 | 8 | 27.3 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Mar 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | KWEB dividend | 1. | SOUN dividend | |
| 2. | SPY dividend | 7. | QQQ dividend | 2. | WOLF dividend | |
| 3. | FXI dividend | 8. | INTC dividend | 3. | BBAI dividend | |
| 4. | IWM dividend | 9. | TLT dividend | 4. | QBTS dividend | |
| 5. | EEM dividend | 10. | SLV dividend | 5. | ASTS dividend | |
Want more examples? STWD Dividend | STXS Dividend
