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 |
| 4.09 | 4.15 | 4.15 | -0.11 | 1.3M | - | 0.2B |
ACB Dividend-Like Income Using Covered Calls
With ACB at 4.15, 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% | 0.12 | 0.0 |
| 5% | 0.21 | 0.1 |
| 10% | 0.42 | 0.1 |
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 | |
| Aug 15 | 6.00 | 0.05 | 50 | 0.1 | 1.85 (44.6%) | |
| Jul 18 | 5.00 | 0.05 | 22 | 0.2 | 0.85 (20.5%) | |
| 5% Yield On ACB Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 6.00 | 0.05 | 50 | 0.1 | 1.85 (44.6%) | |
| Jul 18 | 5.00 | 0.05 | 22 | 0.2 | 0.85 (20.5%) | |
| 10% Yield On ACB Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jul 18 | 5.00 | 0.05 | 22 | 0.2 | 0.85 (20.5%) | |
| Sep 19 | 5.00 | 0.25 | 85 | 0.3 | 0.85 (20.5%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | COGT dividend | |
| 2. | SLV dividend | 7. | TSLA dividend | 2. | ENPH dividend | |
| 3. | SPY dividend | 8. | AAPL dividend | 3. | SERV dividend | |
| 4. | GLD dividend | 9. | FXI dividend | 4. | CRWV dividend | |
| 5. | TLT dividend | 10. | CLSK dividend | 5. | RCAT dividend | |
Want more examples? ACAD Dividend | ACCO Dividend
