ALL Dividend Type Payments
Although ALL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Allstate Corporation (The) to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| Allstate Corporation (The) (ALL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 162.26 | 162.92 | 162.92 | -1.29 | 1.6M | - | 43B |
ALL Dividend-Like Income Using Covered Calls
With ALL at 162.92, 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% | 4.89 | 1.3 |
| 5% | 8.15 | 2.2 |
| 10% | 16.29 | 4.5 |
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 ALL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 19 | 165.00 | 0.65 | 3 | 21.7 | 2.08 (1.3%) | |
| May 17 | 165.00 | 4.60 | 31 | 14.8 | 2.08 (1.3%) | |
| 5% Yield On ALL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 19 | 165.00 | 0.65 | 3 | 21.7 | 2.08 (1.3%) | |
| May 17 | 165.00 | 4.60 | 31 | 14.8 | 2.08 (1.3%) | |
| 10% Yield On ALL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 19 | 165.00 | 0.65 | 3 | 21.7 | 2.08 (1.3%) | |
| May 17 | 165.00 | 4.60 | 31 | 14.8 | 2.08 (1.3%) | |
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| Top 10 Open Interest For Apr 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | TLT dividend | 1. | INFY dividend | |
| 2. | IWM dividend | 7. | FXI dividend | 2. | DJT dividend | |
| 3. | QQQ dividend | 8. | AAPL dividend | 3. | CVNA dividend | |
| 4. | TSLA dividend | 9. | HYG dividend | 4. | FSLY dividend | |
| 5. | SLV dividend | 10. | NVDA dividend | 5. | EYPT dividend | |
Want more examples? ALKS Dividend | ALLE Dividend
