AMGN Dividend

Amgen, Inc dividend

Although AMGN has a dividend of 1.45 with an ex-dividend date of Feb 14, you can sell covered calls on Amgen, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

Amgen, Inc (AMGN)
Bid Ask Last Change Volume P/E Market Cap
194.39 197.13 197.53 +1.12 2.0M - 0.0B

AMGN Dividend-Like Income Using Covered Calls

With AMGN at 197.53, 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% 5.93 1.6
5% 9.88 2.7
10% 19.75 5.4

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 AMGN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 207.50 0.16 9 1.8 10.37 (5.2%)
Dec 28 207.50 0.38 16 2.4 10.37 (5.2%)
5% Yield On AMGN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 205.00 0.39 9 4.3 7.87 (4.0%)
Dec 28 205.00 0.76 16 4.8 7.87 (4.0%)
10% Yield On AMGN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 202.50 0.85 9 9.4 5.37 (2.7%)
Dec 28 202.50 1.37 16 8.6 5.37 (2.7%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.SPY dividend 6.EWZ dividend   1. dividend
2.EEM dividend 7.FXI dividend   2. dividend
3.SPX dividend 8.GE dividend   3. dividend
4.QQQ dividend 9.VXX dividend   4. dividend
5.IWM dividend 10.BAC dividend   5. dividend

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