AMH Dividend
Although AMH has a dividend of 0.26 with an ex-dividend date of Jun 14, you can sell covered calls on American Homes 4 Rent Common Shares of Beneficial Interest 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):
| American Homes 4 Rent Common Shares of Beneficial Interest (AMH) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 34.99 | 36.40 | 36.07 | -0.33 | 1.5M | 37 | 13B |
AMH Dividend-Like Income Using Covered Calls
With AMH at 36.07, 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% | 1.08 | 0.3 |
| 5% | 1.80 | 0.5 |
| 10% | 3.61 | 1.0 |
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 AMH Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 20 | 40.00 | 0.40 | 134 | 0.3 | 3.60 (10.0%) | |
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| Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | QQQ dividend | 6. | EEM dividend | 1. | IEP dividend | |
| 2. | IWM dividend | 7. | TSLA dividend | 2. | INFN dividend | |
| 3. | SPY dividend | 8. | SLV dividend | 3. | PSFE dividend | |
| 4. | HYG dividend | 9. | NVDA dividend | 4. | MNDY dividend | |
| 5. | FXI dividend | 10. | TLT dividend | 5. | NOVA dividend | |
Want more examples? AMGN Dividend | AMJ Dividend
