AMT Dividend Type Payments

American Tower Corp dividend

Although AMT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on American Tower Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 10:05 AM ET):

American Tower Corp (AMT)
Bid Ask Last Change Volume P/E Market Cap
210.78 210.87 210.86 +1.55 87K 69 93B

AMT Dividend-Like Income Using Covered Calls

With AMT at 210.86, 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% 6.33 1.7
5% 10.54 2.9
10% 21.09 5.8

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 AMT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 212.50 0.40 3 13.3 1.63 (0.8%)
Jul 26 215.00 0.55 10 5.5 4.13 (2.0%)
5% Yield On AMT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 212.50 0.40 3 13.3 1.63 (0.8%)
Jul 26 215.00 0.55 10 5.5 4.13 (2.0%)
10% Yield On AMT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 212.50 0.40 3 13.3 1.63 (0.8%)
Jul 26 212.50 1.30 10 13.0 1.63 (0.8%)

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