ADBE Dividend Type Payments

ADOBE SYSTEMS dividend

Although ADBE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ADOBE SYSTEMS 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):

ADOBE SYSTEMS (ADBE)
Bid Ask Last Change Volume P/E Market Cap
255.00 256.50 256.05 +2.51 2.1M 58 124B

ADBE Dividend-Like Income Using Covered Calls

With ADBE at 256.05, 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% 7.68 2.1
5% 12.80 3.5
10% 25.61 7.0

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 ADBE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 262.50 0.13 4 3.3 6.00 (2.3%)
Aug 24 267.50 0.27 11 2.5 11.00 (4.3%)
5% Yield On ADBE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 260.00 0.44 4 11.0 3.50 (1.4%)
Aug 24 265.00 0.50 11 4.5 8.50 (3.3%)
10% Yield On ADBE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 260.00 0.44 4 11.0 3.50 (1.4%)
Aug 24 262.50 0.92 11 8.4 6.00 (2.3%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.BAC dividend   1.M dividend
2.EEM dividend 7.AABA dividend   2.UVXY dividend
3.QQQ dividend 8.FXI dividend   3.JWN dividend
4.SPX dividend 9.FB dividend   4.CGC dividend
5.XLF dividend 10.GLD dividend   5.A dividend

Want more examples? ADAP Dividend | ADC Dividend