ANTM Dividend Type Payments

Although ANTM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Anthem, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

Anthem, Inc (ANTM)
Bid Ask Last Change Volume P/E Market Cap
276.50 307.22 304.69 -0.72 1.2M 20 79B

ANTM Dividend-Like Income Using Covered Calls

With ANTM at 304.69, 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% 9.14 2.5
5% 15.23 4.2
10% 30.47 8.3

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 ANTM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 315.00 0.16 3 5.3 7.78 (2.6%)
Jul 26 330.00 0.32 10 3.2 22.78 (7.5%)
5% Yield On ANTM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 315.00 0.16 3 5.3 7.78 (2.6%)
Jul 26 325.00 0.64 10 6.4 17.78 (5.8%)
10% Yield On ANTM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 310.00 0.75 3 25.0 2.78 (0.9%)
Jul 26 320.00 1.26 10 12.6 12.78 (4.2%)

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Top 10 Open Interest For Jul 19 Expiration     Top 5 High Yield
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Want more examples? ANSS Dividend | AOA Dividend