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
191.50 191.57 191.45 +0.54 14.5M 18 938B

AAPL Dividend-Like Income Using Covered Calls

With AAPL at 191.45, 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% 5.74 1.6
5% 9.57 2.6
10% 19.15 5.2

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
Jul 20 195.00 0.11 4 2.8 3.43 (1.8%)
Jul 27 197.50 0.25 11 2.3 5.93 (3.1%)
5% Yield On AAPL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 20 195.00 0.11 4 2.8 3.43 (1.8%)
Jul 27 195.00 0.68 11 6.2 3.43 (1.8%)
10% Yield On AAPL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 20 192.50 0.63 4 15.8 0.93 (0.5%)
Jul 27 195.00 0.68 11 6.2 3.43 (1.8%)

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Top 10 Open Interest For Jul 20 Expiration     Top 5 High Yield
1.SPY dividend 6.EWZ dividend   1.SKX dividend
2.EEM dividend 7.MU dividend   2.CLF dividend
3.XLF dividend 8.T dividend   3.VKTX dividend
4.BAC dividend 9.QQQ dividend   4.IQ dividend
5.SPX dividend 10.VXX dividend   5.EBAY dividend

Want more examples? AAP Dividend | AAT Dividend