AEIS Dividend
Although AEIS has a dividend of 0.10 with an ex-dividend date of Aug 25, you can sell covered calls on Advanced Energy Industries, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
Advanced Energy Industries, Inc. (AEIS) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
145.00 | 167.50 | 162.52 | +3.71 | 461K | 72 | 7.4B |
AEIS Dividend-Like Income Using Covered Calls
With AEIS at 162.52, 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% | 4.88 | 1.3 |
5% | 8.13 | 2.2 |
10% | 16.25 | 4.5 |
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 AEIS Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Oct 17 | 170.00 | 5.80 | 66 | 8.8 | 2.50 (1.5%) | |
Sep 19 | 170.00 | 3.00 | 38 | 7.9 | 2.50 (1.5%) |
5% Yield On AEIS Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Oct 17 | 170.00 | 5.80 | 66 | 8.8 | 2.50 (1.5%) | |
Sep 19 | 170.00 | 3.00 | 38 | 7.9 | 2.50 (1.5%) |
10% Yield On AEIS Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Oct 17 | 170.00 | 5.80 | 66 | 8.8 | 2.50 (1.5%) | |
Sep 19 | 170.00 | 3.00 | 38 | 7.9 | 2.50 (1.5%) |
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Top 10 Open Interest For Aug 15 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
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2. | SLV dividend | 7. | INTC dividend | 2. | QUBT dividend | |
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Want more examples? AEG Dividend | AEM Dividend