AIT Dividend
Although AIT has a dividend of 0.46 with an ex-dividend date of May 15, you can sell covered calls on Applied Industrial Technologies, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 9:35 AM ET):
| Applied Industrial Technologies, Inc. (AIT) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 221.46 | 224.00 | 223.19 | +2.50 | 4K | 22 | 8.4B |
AIT Dividend-Like Income Using Covered Calls
With AIT at 223.19, 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% | 6.70 | 1.8 |
| 5% | 11.16 | 3.1 |
| 10% | 22.32 | 6.1 |
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 AIT Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 230.00 | 11.10 | 101 | 11.0 | 6.00 (2.7%) | |
| May 16 | 230.00 | 0.20 | 10 | 2.0 | 6.00 (2.7%) | |
| 5% Yield On AIT Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 230.00 | 11.10 | 101 | 11.0 | 6.00 (2.7%) | |
| Jun 20 | 230.00 | 4.90 | 45 | 10.9 | 6.00 (2.7%) | |
| 10% Yield On AIT Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 230.00 | 11.10 | 101 | 11.0 | 6.00 (2.7%) | |
| Jun 20 | 230.00 | 4.90 | 45 | 10.9 | 6.00 (2.7%) | |
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | APP dividend | |
| 2. | SPY dividend | 7. | FXI dividend | 2. | IONQ dividend | |
| 3. | TLT dividend | 8. | TSLA dividend | 3. | QBTS dividend | |
| 4. | QQQ dividend | 9. | GLD dividend | 4. | PINS dividend | |
| 5. | SLV dividend | 10. | INTC dividend | 5. | DKNG dividend | |
Want more examples? AIS Dividend | AIV Dividend
