AMN Dividend Type Payments

AMN HEALTH CARE SERVICES dividend

Although AMN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on AMN HEALTH CARE SERVICES to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 1:10 PM ET):

AMN HEALTH CARE SERVICES (AMN)
Bid Ask Last Change Volume P/E Market Cap
52.07 52.15 52.10 -1.38 163K 17 2.5B

AMN Dividend-Like Income Using Covered Calls

With AMN at 52.10, 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% 1.56 0.4
5% 2.61 0.7
10% 5.21 1.4

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 AMN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 65.00 0.15 29 0.5 12.85 (24.7%)
Jan 18 65.00 0.55 92 0.6 12.85 (24.7%)
5% Yield On AMN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 60.00 0.55 29 1.9 7.85 (15.1%)
Jan 18 60.00 1.30 92 1.4 7.85 (15.1%)
10% Yield On AMN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 60.00 0.55 29 1.9 7.85 (15.1%)
Jan 18 55.00 2.90 92 3.2 2.85 (5.5%)

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