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 Thu 10:40 AM ET):

APPLE (AAPL)
Bid Ask Last Change Volume P/E Market Cap
111.70 111.71 111.70 +0.67 7.9M 13 592B

AAPL Dividend-Like Income Using Covered Calls

With AAPL at 111.70, 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% 3.35 0.9
5% 5.59 1.5
10% 11.17 3.1

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
Dec 16 115.00 0.15 9 1.7 3.29 (2.9%)
Dec 23 116.00 0.21 16 1.3 4.29 (3.8%)
5% Yield On AAPL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 16 115.00 0.15 9 1.7 3.29 (2.9%)
Dec 23 115.00 0.33 16 2.1 3.29 (2.9%)
10% Yield On AAPL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 16 114.00 0.28 9 3.1 2.29 (2.1%)
Dec 23 114.00 0.54 16 3.4 2.29 (2.1%)

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Top 10 Open Interest For Dec 16 Expiration     Top 5 High Yield
1.SPY dividend 6.EWZ dividend   1.OPHT dividend
2.SPX dividend 7.XLF dividend   2.SGYP dividend
3.EEM dividend 8.USO dividend   3.CLF dividend
4.GLD dividend 9.TWTR dividend   4.AKS dividend
5.IWM dividend 10.QQQ dividend   5.NE dividend

Want more examples? AAP Dividend | AAT Dividend