AGN Dividend Type Payments

ALLERGAN INC dividend

Although AGN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ALLERGAN INC to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

ALLERGAN INC (AGN)
Bid Ask Last Change Volume P/E Market Cap
182.00 186.69 184.21 +0.45 1.3M - 63B

AGN Dividend-Like Income Using Covered Calls

With AGN at 184.21, 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% 5.53 1.5
5% 9.21 2.5
10% 18.42 5.0

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 AGN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 192.50 0.20 9 2.2 5.81 (3.2%)
Aug 31 195.00 0.33 16 2.1 8.31 (4.5%)
5% Yield On AGN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 190.00 0.44 9 4.9 3.31 (1.8%)
Aug 31 192.50 0.56 16 3.5 5.81 (3.2%)
10% Yield On AGN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 187.50 0.94 9 10.4 0.81 (0.4%)
Aug 31 190.00 0.97 16 6.1 3.31 (1.8%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
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Want more examples? AGM Dividend | AGNC Dividend