APD Dividend

AIR PRODUCTS & CHEMICALS dividend

Although APD has a dividend of 1.10 with an ex-dividend date of Sep 28, you can sell covered calls on AIR PRODUCTS & CHEMICALS 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):

AIR PRODUCTS & CHEMICALS (APD)
Bid Ask Last Change Volume P/E Market Cap
154.36 168.00 166.61 +1.89 1.2M 24 36B

APD Dividend-Like Income Using Covered Calls

With APD at 166.61, 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% 5.00 1.4
5% 8.33 2.3
10% 16.66 4.6

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 APD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 170.00 1.80 36 5.0 2.00 (1.2%)
Oct 19 175.00 1.20 64 1.9 7.00 (4.2%)
5% Yield On APD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 170.00 1.80 36 5.0 2.00 (1.2%)
Oct 19 170.00 2.65 64 4.1 2.00 (1.2%)
10% Yield On APD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 170.00 1.80 36 5.0 2.00 (1.2%)

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Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
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Want more examples? APC Dividend | APDN Dividend