SWK Dividend

Although SWK has a dividend of 0.82 with an ex-dividend date of Mar 4, you can sell covered calls on Stanley Black & Decker, Inc. 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):

Stanley Black & Decker, Inc. (SWK)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
85.71	88.48	86.80	-1.15	1.2M	-	14B

SWK Dividend-Like Income Using Covered Calls

With SWK at 86.80, 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%	2.60	0.7
5%	4.34	1.2
10%	8.68	2.4

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 SWK Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 17	90.00	2.20	53	4.2	1.52 (1.8%)
Oct 17	100.00	3.50	236	1.5	11.52 (13.3%)

5% Yield On SWK Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 17	90.00	2.20	53	4.2	1.52 (1.8%)
Oct 17	100.00	3.50	236	1.5	11.52 (13.3%)

10% Yield On SWK Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 17	90.00	2.20	53	4.2	1.52 (1.8%)
Oct 17	90.00	6.90	236	2.9	1.52 (1.8%)

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Want more examples? SWI Dividend | SWKS Dividend