AKRX Dividend Type Payments

AKORN dividend

Although AKRX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on AKORN to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 9:50 AM ET):

AKORN (AKRX)
Bid Ask Last Change Volume P/E Market Cap
13.38 13.39 13.37 +0.08 50K - 1.7B

AKRX Dividend-Like Income Using Covered Calls

With AKRX at 13.37, 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% 0.40 0.1
5% 0.67 0.2
10% 1.34 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:

3% Yield On AKRX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 20.00 0.05 4 1.3 6.61 (49.4%)
Oct 19 32.50 0.05 32 0.2 19.11 (142.9%)
5% Yield On AKRX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 20.00 0.05 4 1.3 6.61 (49.4%)
Oct 19 30.00 0.15 32 0.5 16.61 (124.2%)
10% Yield On AKRX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 20.00 0.05 4 1.3 6.61 (49.4%)
Oct 19 30.00 0.15 32 0.5 16.61 (124.2%)

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Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.EEM dividend 6.GE dividend   1.GERN dividend
2.SPY dividend 7.EWZ dividend   2.TGTX dividend
3.SPX dividend 8.FXI dividend   3.TLRY dividend
4.QQQ dividend 9.VXX dividend   4.ANAB dividend
5.XLF dividend 10.FB dividend   5.PDD dividend

Want more examples? AKR Dividend | AKS Dividend