ACB Dividend Type Payments
Although ACB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Aurora Cannabis Inc. - Common Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
Aurora Cannabis Inc. - Common Shares (ACB) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
6.68 | 6.70 | 6.70 | -0.01 | 10.0M | - | 0.1B |
ACB Dividend-Like Income Using Covered Calls
With ACB at 6.70, 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% | 0.20 | 0.1 |
5% | 0.34 | 0.1 |
10% | 0.67 | 0.2 |
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 ACB Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 3 | 10.00 | 0.01 | 8 | 0.1 | 3.30 (49.3%) | |
May 10 | 10.00 | 0.03 | 15 | 0.2 | 3.30 (49.3%) |
5% Yield On ACB Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 3 | 10.00 | 0.01 | 8 | 0.1 | 3.30 (49.3%) | |
May 10 | 10.00 | 0.03 | 15 | 0.2 | 3.30 (49.3%) |
10% Yield On ACB Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 3 | 7.00 | 0.27 | 8 | 3.4 | 0.30 (4.5%) | |
May 10 | 10.00 | 0.03 | 15 | 0.2 | 3.30 (49.3%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | EEM dividend | 1. | WOLF dividend | |
2. | HYG dividend | 7. | KWEB dividend | 2. | ENVX dividend | |
3. | QQQ dividend | 8. | SLV dividend | 3. | FSLY dividend | |
4. | SPY dividend | 9. | TSLA dividend | 4. | NOVA dividend | |
5. | FXI dividend | 10. | NVDA dividend | 5. | COIN dividend |
Want more examples? ACAD Dividend | ACCD Dividend