AMGN Dividend Type Payments

AMGEN dividend

Although AMGN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on AMGEN to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 10:25 AM ET):

AMGEN (AMGN)
Bid Ask Last Change Volume P/E Market Cap
197.94 198.02 198.03 +0.61 296K 53 128B

AMGN Dividend-Like Income Using Covered Calls

With AMGN at 198.03, 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% 5.94 1.6
5% 9.90 2.7
10% 19.80 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
Aug 24 202.50 0.23 5 4.6 4.48 (2.3%)
Aug 31 205.00 0.33 12 2.8 6.98 (3.5%)
5% Yield On AMGN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 202.50 0.23 5 4.6 4.48 (2.3%)
Aug 31 205.00 0.33 12 2.8 6.98 (3.5%)
10% Yield On AMGN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 200.00 0.76 5 15.2 1.98 (1.0%)
Aug 31 202.50 0.72 12 6.0 4.48 (2.3%)

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Want more examples? AMG Dividend | AMGP Dividend