ABR Dividend Type Payments


Although ABR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ARBOR REALTY TRUST 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):

Bid Ask Last Change Volume P/E Market Cap
11.41 11.46 11.46 +0.01 902K 8.7 0.9B

ABR Dividend-Like Income Using Covered Calls

With ABR at 11.46, 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% 0.34 0.1
5% 0.57 0.2
10% 1.15 0.3

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:

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Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.FXI dividend   1.GERN dividend
2.FTV dividend 7.AMD dividend   2.BBBY dividend
3.EEM dividend 8.BABA dividend   3.AMRN dividend
4.SPX dividend 9.USO dividend   4.BB dividend
5.MU dividend 10.GLD dividend   5.NKE dividend

Want more examples? ABMD Dividend | ABT Dividend