ALLE Dividend Type Payments
Although ALLE has no upcoming (meaning, Board-approved and announced) dividends, 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 |
| 164.98 | 169.00 | 167.30 | -3.92 | 1.1M | 24 | 15B |
ALLE Dividend-Like Income Using Covered Calls
With ALLE at 167.30, 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% | 5.02 | 1.4 |
| 5% | 8.37 | 2.3 |
| 10% | 16.73 | 4.6 |
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 ALLE Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 170.00 | 2.50 | 57 | 4.4 | 1.00 (0.6%) | |
| Nov 21 | 170.00 | 2.10 | 29 | 7.2 | 1.00 (0.6%) | |
| 5% Yield On ALLE Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 170.00 | 2.50 | 57 | 4.4 | 1.00 (0.6%) | |
| Nov 21 | 170.00 | 2.10 | 29 | 7.2 | 1.00 (0.6%) | |
| 10% Yield On ALLE Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 21 | 170.00 | 2.10 | 29 | 7.2 | 1.00 (0.6%) | |
| Mar 20 | 170.00 | 8.90 | 148 | 6.0 | 1.00 (0.6%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | TLT dividend | 1. | UUUU dividend | |
| 2. | KVUE dividend | 7. | HYG dividend | 2. | CRML dividend | |
| 3. | NVDA dividend | 8. | EEM dividend | 3. | UPST dividend | |
| 4. | SLV dividend | 9. | QQQ dividend | 4. | RXRX dividend | |
| 5. | GLD dividend | 10. | INTC dividend | 5. | LQDA dividend | |
Want more examples? ALL Dividend | ALLO Dividend
