ADI Dividend Type Payments

ANALOG DEVICES dividend

Although ADI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ANALOG DEVICES 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):

ANALOG DEVICES (ADI)
Bid Ask Last Change Volume P/E Market Cap
97.22 101.39 99.09 -0.07 3.4M 34 37B

ADI Dividend-Like Income Using Covered Calls

With ADI at 99.09, 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% 2.97 0.8
5% 4.95 1.4
10% 9.91 2.7

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 ADI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 29 102.00 0.15 8 1.9 0.61 (0.6%)
Jul 6 103.00 0.15 15 1.0 1.61 (1.6%)
5% Yield On ADI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 29 102.00 0.15 8 1.9 0.61 (0.6%)
Jul 6 102.00 0.30 15 2.0 0.61 (0.6%)
10% Yield On ADI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 13 102.00 0.65 22 3.0 0.61 (0.6%)
Jul 20 102.00 1.00 29 3.4 0.61 (0.6%)

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Top 10 Open Interest For Jul 20 Expiration     Top 5 High Yield
1.SPY dividend 6.EWZ dividend   1.I dividend
2.EEM dividend 7.SPX dividend   2.GBT dividend
3.XLF dividend 8.TWX dividend   3.AKAO dividend
4.T dividend 9.BAC dividend   4.TSRO dividend
5.MU dividend 10.QQQ dividend   5.PCG dividend

Want more examples? ADC Dividend | ADM Dividend