ALLE Dividend

Although ALLE has a dividend of 0.48 with an ex-dividend date of Jun 14, you can sell covered calls on Allegion plc Ordinary Shares 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):

Allegion plc Ordinary Shares (ALLE)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
112.27	129.00	125.21	+0.37	328K	20	11B

ALLE Dividend-Like Income Using Covered Calls

With ALLE at 125.21, 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%	3.76	1.0
5%	6.26	1.7
10%	12.52	3.4

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 ALLE Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 17	130.00	1.55	29	5.3	1.00 (0.8%)
Jun 21	130.00	2.95	64	4.6	1.00 (0.8%)

5% Yield On ALLE Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 17	130.00	1.55	29	5.3	1.00 (0.8%)
Jun 21	130.00	2.95	64	4.6	1.00 (0.8%)

10% Yield On ALLE Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 17	130.00	1.55	29	5.3	1.00 (0.8%)
Jun 21	130.00	2.95	64	4.6	1.00 (0.8%)

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Want more examples? ALL Dividend | ALLK Dividend