AMD Dividend Type Payments

ADVANCED MICRO DEVICES dividend

Although AMD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ADVANCED MICRO DEVICES to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 10:15 AM ET):

ADVANCED MICRO DEVICES (AMD)
Bid Ask Last Change Volume P/E Market Cap
19.41 19.42 19.41 -0.36 15.2M 62 19B

AMD Dividend-Like Income Using Covered Calls

With AMD at 19.41, 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% 0.58 0.2
5% 0.97 0.3
10% 1.94 0.5

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 AMD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 22.00 0.01 5 0.2 2.58 (13.3%)
Aug 31 23.00 0.02 12 0.2 3.58 (18.4%)
5% Yield On AMD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 21.50 0.02 5 0.4 2.08 (10.7%)
Aug 31 21.50 0.08 12 0.7 2.08 (10.7%)
10% Yield On AMD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 21.00 0.04 5 0.8 1.58 (8.1%)
Aug 31 21.50 0.08 12 0.7 2.08 (10.7%)

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Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
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Want more examples? AMCX Dividend | AME Dividend