AINV Dividend

Apollo Investment dividend

Although AINV has a dividend of 0.15 with an ex-dividend date of Dec 19, you can sell covered calls on Apollo Investment 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):

Apollo Investment (AINV)
Bid Ask Last Change Volume P/E Market Cap
15.05 15.13 15.05 -0.44 401K - 0.0B

AINV Dividend-Like Income Using Covered Calls

With AINV at 15.05, 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% 0.45 0.1
5% 0.75 0.2
10% 1.51 0.4

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:

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.SPY dividend 6.IWM dividend   1. dividend
2.EEM dividend 7.FXI dividend   2. dividend
3.SPX dividend 8.GE dividend   3. dividend
4.QQQ dividend 9.USO dividend   4. dividend
5.EWZ dividend 10.VXX dividend   5. dividend

Want more examples? AIN Dividend | AIR Dividend