AMRN Dividend Type Payments

Amarin Corp Plc ADS dividend

Although AMRN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Amarin Corp Plc ADS 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):

Amarin Corp Plc ADS (AMRN)
Bid Ask Last Change Volume P/E Market Cap
17.80 17.86 17.79 +0.40 5.1M -48.2 5.6B

AMRN Dividend-Like Income Using Covered Calls

With AMRN at 17.79, 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% 0.53 0.1
5% 0.89 0.2
10% 1.78 0.5

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 AMRN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 24 21.00 0.03 8 0.4 3.14 (17.7%)
May 31 25.00 0.03 15 0.2 7.14 (40.1%)
5% Yield On AMRN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 24 21.00 0.03 8 0.4 3.14 (17.7%)
May 31 22.00 0.04 15 0.3 4.14 (23.3%)
10% Yield On AMRN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 24 20.00 0.07 8 0.9 2.14 (12.0%)
May 31 21.50 0.10 15 0.7 3.64 (20.5%)

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