ABMD Dividend Type Payments

ABIOMED dividend

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

ABIOMED (ABMD)
Bid Ask Last Change Volume P/E Market Cap
352.50 367.10 366.20 +3.78 477K 98 16B

ABMD Dividend-Like Income Using Covered Calls

With ABMD at 366.20, 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% 10.99 3.0
5% 18.31 5.0
10% 36.62 10.0

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 ABMD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 490.00 0.85 26 3.3 122.90 (33.6%)
Dec 21 490.00 2.15 61 3.5 122.90 (33.6%)
5% Yield On ABMD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 460.00 1.90 26 7.3 92.90 (25.4%)
Dec 21 470.00 3.30 61 5.4 102.90 (28.1%)
10% Yield On ABMD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 440.00 3.40 26 13.1 72.90 (19.9%)
Dec 21 430.00 7.50 61 12.3 62.90 (17.2%)

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Top 10 Open Interest For Nov 16 Expiration     Top 5 High Yield
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Want more examples? ABM Dividend | ABR Dividend