AMH Dividend Type Payments
Although AMH has no upcoming (meaning, Board-approved and announced) dividends, 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 Mon 4:16 PM ET):
American Homes 4 Rent Common Shares of Beneficial Interest (AMH) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
35.74 | 36.50 | 35.85 | -0.43 | 3.1M | 36 | 13B |
AMH Dividend-Like Income Using Covered Calls
With AMH at 35.85, 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% | 1.79 | 0.5 |
10% | 3.59 | 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 | 0.70 | 187 | 0.4 | 3.50 (9.8%) |
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Top 10 Open Interest For Apr 19 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | TLT dividend | 1. | SOUN dividend | |
2. | SPY dividend | 7. | QQQ dividend | 2. | MRNS dividend | |
3. | HYG dividend | 8. | EEM dividend | 3. | NOVA dividend | |
4. | FXI dividend | 9. | AAPL dividend | 4. | DLO dividend | |
5. | SLV dividend | 10. | TSLA dividend | 5. | CLSK dividend |
Want more examples? AMGN Dividend | AMJ Dividend