AHL Dividend

ASPEN INSURANCE HOLDINGS dividend

Although AHL has a dividend of 0.24 with an ex-dividend date of Aug 16, you can sell covered calls on ASPEN INSURANCE HOLDINGS 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):

ASPEN INSURANCE HOLDINGS (AHL)
Bid Ask Last Change Volume P/E Market Cap
37.25 37.50 37.30 +0.60 466K - 2.2B

AHL Dividend-Like Income Using Covered Calls

With AHL at 37.30, 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% 1.12 0.3
5% 1.87 0.5
10% 3.73 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 AHL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 40.00 0.05 4 1.3 2.50 (6.7%)
Sep 21 45.00 0.35 39 0.9 7.50 (20.1%)
5% Yield On AHL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 40.00 0.05 4 1.3 2.50 (6.7%)
Sep 21 45.00 0.35 39 0.9 7.50 (20.1%)
10% Yield On AHL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 40.00 0.05 4 1.3 2.50 (6.7%)
Sep 21 40.00 1.20 39 3.1 2.50 (6.7%)

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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? AHH Dividend | AHT Dividend