AAPL Dividend

APPLE dividend

Although AAPL has a dividend of 0.52 with an ex-dividend date of Aug 6, 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 Fri 4:16 PM ET):

APPLE (AAPL)
Bid Ask Last Change Volume P/E Market Cap
121.47 121.50 121.30 -1.07 41.8M 14 698B

AAPL Dividend-Like Income Using Covered Calls

With AAPL at 121.30, 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% 3.64 1.0
5% 6.07 1.7
10% 12.13 3.3

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
Aug 7 126.00 0.12 8 1.5 4.50 (3.7%)
Aug 14 128.00 0.22 15 1.5 6.50 (5.4%)
5% Yield On AAPL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 7 125.00 0.21 8 2.6 3.50 (2.9%)
Aug 14 127.00 0.32 15 2.1 5.50 (4.5%)
10% Yield On AAPL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 7 124.00 0.38 8 4.8 2.50 (2.1%)
Aug 14 125.00 0.65 15 4.3 3.50 (2.9%)

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Top 10 Open Interest For Aug 21 Expiration     Top 5 High Yield
1.SPY dividend 6.IWM dividend   1.GRPN dividend
2.AAPL dividend 7.EEM dividend   2.FIT dividend
3.FXI dividend 8.QQQ dividend   3.WBAI dividend
4.BAC dividend 9.VXX dividend   4.COH dividend
5.SPX dividend 10.FB dividend   5.ABX dividend

Want more examples? AAP Dividend | AAT Dividend