AJX Dividend
Although AJX has a dividend of 0.06 with an ex-dividend date of May 14, you can sell covered calls on Great Ajax Corp. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 11:50 AM ET):
| Great Ajax Corp. (AJX) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 3.65 | 3.70 | 3.68 | +0.18 | 87K | - | 0.1B |
AJX Dividend-Like Income Using Covered Calls
With AJX at 3.68, 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% | 0.11 | 0.0 |
| 5% | 0.18 | 0.1 |
| 10% | 0.37 | 0.1 |
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:
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| Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IWM dividend | 6. | EEM dividend | 1. | RIVN dividend | |
| 2. | QQQ dividend | 7. | TSLA dividend | 2. | TOST dividend | |
| 3. | SPY dividend | 8. | SLV dividend | 3. | AAOI dividend | |
| 4. | HYG dividend | 9. | TLT dividend | 4. | UPST dividend | |
| 5. | FXI dividend | 10. | NVDA dividend | 5. | GRPN dividend | |
Want more examples? AJG Dividend | AKAM Dividend
