AHH Dividend

Armada Hoffler Properties, Inc dividend

Although AHH has a dividend of 0.21 with an ex-dividend date of Jun 25, you can sell covered calls on Armada Hoffler Properties, Inc 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):

Armada Hoffler Properties, Inc (AHH)
Bid Ask Last Change Volume P/E Market Cap
16.50 16.59 16.55 +0.05 110K 47 1.1B

AHH Dividend-Like Income Using Covered Calls

With AHH at 16.55, 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% 0.50 0.1
5% 0.83 0.2
10% 1.66 0.5

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 AHH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 15 17.50 0.25 176 0.1 0.91 (5.5%)

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Want more examples? AHC Dividend | AHL Dividend