AEM Dividend

AGNICO EAGLE MINES LTD dividend

Although AEM has a dividend of 0.11 with an ex-dividend date of Aug 30, you can sell covered calls on AGNICO EAGLE MINES LTD 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):

AGNICO EAGLE MINES LTD (AEM)
Bid Ask Last Change Volume P/E Market Cap
38.29 40.49 38.30 -0.33 1.4M 55 9.3B

AEM Dividend-Like Income Using Covered Calls

With AEM at 38.30, 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% 1.15 0.3
5% 1.92 0.5
10% 3.83 1.0

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 AEM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 43.00 0.15 39 0.4 2.51 (6.6%)
Nov 16 46.00 0.31 95 0.3 5.51 (14.4%)
5% Yield On AEM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 42.00 0.23 39 0.6 1.51 (3.9%)
Nov 16 44.00 0.52 95 0.5 3.51 (9.2%)
10% Yield On AEM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 41.00 1.15 95 1.2 0.51 (1.3%)
Jan 18 41.00 1.79 158 1.1 0.51 (1.3%)

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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? AEL Dividend | AEO Dividend