AN Dividend Type Payments
Although AN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on AutoNation, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| AutoNation, Inc. (AN) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 188.32 | 211.54 | 201.03 | +2.80 | 371K | 12 | 7.5B |
AN Dividend-Like Income Using Covered Calls
With AN at 201.03, 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% | 6.03 | 1.7 |
| 5% | 10.05 | 2.8 |
| 10% | 20.10 | 5.5 |
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 AN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 220.00 | 1.65 | 53 | 3.1 | 8.46 (4.2%) | |
| Oct 17 | 220.00 | 4.30 | 116 | 3.7 | 8.46 (4.2%) | |
| 5% Yield On AN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 220.00 | 1.65 | 53 | 3.1 | 8.46 (4.2%) | |
| Oct 17 | 220.00 | 4.30 | 116 | 3.7 | 8.46 (4.2%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | ALT dividend | |
| 2. | SLV dividend | 7. | IWM dividend | 2. | COGT dividend | |
| 3. | SPY dividend | 8. | AAPL dividend | 3. | BB dividend | |
| 4. | GLD dividend | 9. | FXI dividend | 4. | NVTS dividend | |
| 5. | TLT dividend | 10. | QQQ dividend | 5. | CELC dividend | |
Want more examples? AMZN Dividend | ANAB Dividend
