AB Dividend Type Payments
Although AB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on AllianceBernstein Holding L.P. Units to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 10:55 AM ET):
| AllianceBernstein Holding L.P. Units (AB) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 41.71 | 41.79 | 41.75 | +0.32 | 51K | 14 | 4.6B |
AB Dividend-Like Income Using Covered Calls
With AB at 41.75, 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% | 1.25 | 0.3 |
| 5% | 2.09 | 0.6 |
| 10% | 4.18 | 1.1 |
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 AB Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 45.00 | 0.60 | 137 | 0.4 | 3.21 (7.7%) | |
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| Top 10 Open Interest For Dec 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | RZLT dividend | |
| 2. | SPY dividend | 7. | GLD dividend | 2. | AI dividend | |
| 3. | QQQ dividend | 8. | TLT dividend | 3. | IMNM dividend | |
| 4. | IWM dividend | 9. | SLV dividend | 4. | PATH dividend | |
| 5. | IBIT dividend | 10. | FXI dividend | 5. | ALT dividend | |
Want more examples? AAXJ Dividend | ABAT Dividend
