AAPL Dividend Type Payments

APPLE dividend

Although AAPL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on APPLE to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

APPLE (AAPL)
Bid Ask Last Change Volume P/E Market Cap
144.48 144.50 144.53 +0.89 18.3M 17 754B

AAPL Dividend-Like Income Using Covered Calls

With AAPL at 144.53, here's a table showing how big the annual "dividend" (ie. 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% 4.34 1.2
5% 7.23 2.0
10% 14.45 4.0

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 AAPL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 28 148.00 0.06 4 1.5 3.50 (2.4%)
May 5 152.50 0.27 11 2.5 8.00 (5.5%)
5% Yield On AAPL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 28 147.00 0.14 4 3.5 2.50 (1.7%)
May 5 152.50 0.27 11 2.5 8.00 (5.5%)
10% Yield On AAPL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 28 146.00 0.27 4 6.8 1.50 (1.0%)
May 5 150.00 0.60 11 5.5 5.50 (3.8%)

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Top 10 Open Interest For May 19 Expiration     Top 5 High Yield
1.SPY dividend 6.QQQ dividend   1.X dividend
2.SPX dividend 7.IWM dividend   2.UAA dividend
3.BAC dividend 8.VXX dividend   3.CLF dividend
4.FXI dividend 9.XLF dividend   4.WFT dividend
5.EEM dividend 10.EFA dividend   5.TWTR dividend

Want more examples? AAP Dividend | AAT Dividend