ALFA Dividend Type Payments

ALPHACLONE ALTERNATIVE ALPHA E dividend

Although ALFA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ALPHACLONE ALTERNATIVE ALPHA E 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):

ALPHACLONE ALTERNATIVE ALPHA E (ALFA)
Bid Ask Last Change Volume P/E Market Cap
49.38 49.38 49.38 +0.28 3K - 0.3B

ALFA Dividend-Like Income Using Covered Calls

With ALFA at 49.38, 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% 1.48 0.4
5% 2.47 0.7
10% 4.94 1.4

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 ALFA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 50.00 0.60 127 0.5 0.62 (1.3%)
Mar 15 51.00 1.40 211 0.7 1.62 (3.3%)
5% Yield On ALFA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 50.00 1.85 211 0.9 0.62 (1.3%)

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