APC Dividend

ANADARKO PETROLEUM dividend

Although APC has a dividend of 0.25 with an ex-dividend date of Sep 11, you can sell covered calls on ANADARKO PETROLEUM 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):

ANADARKO PETROLEUM (APC)
Bid Ask Last Change Volume P/E Market Cap
62.05 63.92 62.05 -0.26 4.6M 81 32B

APC Dividend-Like Income Using Covered Calls

With APC at 62.05, 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% 1.86 0.5
5% 3.10 0.9
10% 6.21 1.7

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 APC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 65.50 0.08 8 1.0 1.58 (2.5%)
Aug 31 67.50 0.08 15 0.5 3.58 (5.8%)
5% Yield On APC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 65.50 0.08 8 1.0 1.58 (2.5%)
Aug 31 66.50 0.14 15 0.9 2.58 (4.2%)
10% Yield On APC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 64.50 0.17 8 2.1 0.58 (0.9%)
Aug 31 65.00 0.34 15 2.3 1.08 (1.7%)

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Want more examples? APAM Dividend | APD Dividend