ABT Dividend Type Payments

ABBOTT LABORATORIES dividend

Although ABT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ABBOTT LABORATORIES to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 10:45 AM ET):

ABBOTT LABORATORIES (ABT)
Bid Ask Last Change Volume P/E Market Cap
69.85 69.86 69.85 +0.36 860K 142 124B

ABT Dividend-Like Income Using Covered Calls

With ABT at 69.85, 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% 2.10 0.6
5% 3.49 1.0
10% 6.99 1.9

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 ABT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 72.00 0.03 3 1.0 2.14 (3.1%)
Nov 23 73.00 0.06 10 0.6 3.14 (4.5%)
5% Yield On ABT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 72.00 0.03 3 1.0 2.14 (3.1%)
Nov 23 72.50 0.10 10 1.0 2.64 (3.8%)
10% Yield On ABT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 71.50 0.07 3 2.3 1.64 (2.3%)
Nov 23 71.50 0.28 10 2.8 1.64 (2.3%)

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Top 10 Open Interest For Nov 16 Expiration     Top 5 High Yield
1.SPY dividend 6.PBR dividend   1.NVDA dividend
2.EEM dividend 7.IWM dividend   2.AMRN dividend
3.EWZ dividend 8.BAC dividend   3.NTAP dividend
4.QQQ dividend 9.FXI dividend   4.WSM dividend
5.SPX dividend 10.VXX dividend   5.JWN dividend

Want more examples? ABR Dividend | ABUS Dividend