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 Tue 4:16 PM ET):

ABBOTT LABORATORIES (ABT)
Bid Ask Last Change Volume P/E Market Cap
62.80 63.24 62.80 +1.02 7.3M 229 108B

ABT Dividend-Like Income Using Covered Calls

With ABT at 62.80, 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% 1.88 0.5
5% 3.14 0.9
10% 6.28 1.7

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
Jul 20 67.00 0.03 4 0.8 3.76 (6.0%)
Jul 27 66.00 0.12 11 1.1 2.76 (4.4%)
5% Yield On ABT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 20 66.50 0.05 4 1.3 3.26 (5.2%)
Jul 27 66.00 0.12 11 1.1 2.76 (4.4%)
10% Yield On ABT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 20 66.00 0.08 4 2.0 2.76 (4.4%)
Jul 27 65.00 0.26 11 2.4 1.76 (2.8%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
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? ABR Dividend | ABUS Dividend