ARES Dividend
Although ARES has a dividend of 1.35 with an ex-dividend date of Mar 17, you can sell covered calls on Ares Management Corporation Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 2:20 PM ET):
| Ares Management Corporation Class A (ARES) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 135.01 | 135.20 | 135.06 | -2.32 | 2.3M | - | 45B |
ARES Dividend-Like Income Using Covered Calls
With ARES at 135.06, 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% | 4.05 | 1.1 |
| 5% | 6.75 | 1.9 |
| 10% | 13.51 | 3.7 |
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 ARES Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 20 | 135.00 | 3.60 | 9 | 37.8 | 0.00 (0.0%) | |
| Mar 20 | 135.00 | 7.60 | 37 | 20.0 | 0.00 (0.0%) | |
| 5% Yield On ARES Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 20 | 135.00 | 3.60 | 9 | 37.8 | 0.00 (0.0%) | |
| Mar 20 | 135.00 | 7.60 | 37 | 20.0 | 0.00 (0.0%) | |
| 10% Yield On ARES Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 20 | 135.00 | 3.60 | 9 | 37.8 | 0.00 (0.0%) | |
| Mar 20 | 135.00 | 7.60 | 37 | 20.0 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SPY dividend | 1. | PINS dividend | |
| 2. | GLD dividend | 7. | QQQ dividend | 2. | RIVN dividend | |
| 3. | SLV dividend | 8. | TLT dividend | 3. | DKNG dividend | |
| 4. | KWEB dividend | 9. | INTC dividend | 4. | AAP dividend | |
| 5. | IBIT dividend | 10. | EWZ dividend | 5. | OCUL dividend | |
Want more examples? ARE Dividend | ARGT Dividend
