AGM Dividend Type Payments
Although AGM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Federal Agricultural Mortgage Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 3:10 PM ET):
| Federal Agricultural Mortgage Corporation (AGM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 183.86 | 184.35 | 184.54 | -2.11 | 287K | - | 2.0B |
AGM Dividend-Like Income Using Covered Calls
With AGM at 184.54, 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% | 5.54 | 1.5 |
| 5% | 9.23 | 2.5 |
| 10% | 18.45 | 5.1 |
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 AGM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 185.00 | 7.70 | 60 | 12.8 | 0.65 (0.4%) | |
| Jul 18 | 185.00 | 4.40 | 32 | 13.8 | 0.65 (0.4%) | |
| 5% Yield On AGM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 185.00 | 7.70 | 60 | 12.8 | 0.65 (0.4%) | |
| Jul 18 | 185.00 | 4.40 | 32 | 13.8 | 0.65 (0.4%) | |
| 10% Yield On AGM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 185.00 | 7.70 | 60 | 12.8 | 0.65 (0.4%) | |
| Jul 18 | 185.00 | 4.40 | 32 | 13.8 | 0.65 (0.4%) | |
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| Top 10 Open Interest For Jun 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | GES dividend | |
| 2. | SPY dividend | 7. | IWM dividend | 2. | QUBT dividend | |
| 3. | QQQ dividend | 8. | TLT dividend | 3. | CAPR dividend | |
| 4. | TSLA dividend | 9. | AAPL dividend | 4. | BBAI dividend | |
| 5. | SLV dividend | 10. | INTC dividend | 5. | COGT dividend | |
Want more examples? AGL Dividend | AGNC Dividend
