ALB Dividend

ALBEMARLE dividend

Although ALB has a dividend of 0.34 with an ex-dividend date of Sep 13, you can sell covered calls on ALBEMARLE to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

ALBEMARLE (ALB)
Bid Ask Last Change Volume P/E Market Cap
95.00 98.44 97.06 +1.52 1.1M 31 10B

ALB Dividend-Like Income Using Covered Calls

With ALB at 97.06, 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% 2.91 0.8
5% 4.85 1.3
10% 9.71 2.7

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 ALB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 105.00 0.55 37 1.5 6.56 (6.8%)
Dec 21 115.00 1.05 128 0.8 16.56 (17.1%)
5% Yield On ALB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 105.00 0.55 37 1.5 6.56 (6.8%)
Dec 21 110.00 1.80 128 1.4 11.56 (11.9%)
10% Yield On ALB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 100.00 1.70 37 4.6 1.56 (1.6%)
Dec 21 100.00 4.80 128 3.8 1.56 (1.6%)

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Want more examples? AL Dividend | ALBO Dividend