ALGN Dividend Type Payments

ALIGN TECH dividend

Although ALGN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ALIGN TECH 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):

ALIGN TECH (ALGN)
Bid Ask Last Change Volume P/E Market Cap
343.13 371.00 357.30 +6.10 933K 95 28B

ALGN Dividend-Like Income Using Covered Calls

With ALGN at 357.30, 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% 10.72 2.9
5% 17.87 4.9
10% 35.73 9.8

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 ALGN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 382.50 0.30 8 3.8 11.50 (3.2%)
Aug 31 392.50 0.50 15 3.3 21.50 (6.0%)
5% Yield On ALGN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 380.00 0.40 8 5.0 9.00 (2.5%)
Aug 31 387.50 0.80 15 5.3 16.50 (4.6%)
10% Yield On ALGN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 375.00 0.85 8 10.6 4.00 (1.1%)
Aug 31 380.00 1.60 15 10.7 9.00 (2.5%)

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