ALL Dividend

Allstate Corp dividend

Although ALL has a dividend of 0.50 with an ex-dividend date of Feb 27, you can sell covered calls on Allstate Corp 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):

Allstate Corp (ALL)
Bid Ask Last Change Volume P/E Market Cap
94.39 94.99 94.38 +1.15 1.4M 9.2 31B

ALL Dividend-Like Income Using Covered Calls

With ALL at 94.38, 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% 2.83 0.8
5% 4.72 1.3
10% 9.44 2.6

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
Mar 15 95.00 0.98 29 3.4 0.01 (0.0%)
Apr 18 97.50 0.80 63 1.3 2.51 (2.7%)
5% Yield On ALL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 95.00 0.98 29 3.4 0.01 (0.0%)
Apr 18 95.00 1.74 63 2.8 0.01 (0.0%)
10% Yield On ALL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 95.00 0.98 29 3.4 0.01 (0.0%)
Apr 18 95.00 1.74 63 2.8 0.01 (0.0%)

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Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
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Want more examples? ALKS Dividend | ALLE Dividend