ARR Dividend Type Payments

ARMOUR RESIDENTIAL REIT INC dividend

Although ARR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ARMOUR RESIDENTIAL REIT INC to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 11:10 AM ET):

ARMOUR RESIDENTIAL REIT INC (ARR)
Bid Ask Last Change Volume P/E Market Cap
20.81 20.82 20.82 -0.02 116K 6.2 0.9B

ARR Dividend-Like Income Using Covered Calls

With ARR at 20.82, 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% 0.62 0.2
5% 1.04 0.3
10% 2.08 0.6

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:

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Top 10 Open Interest For Nov 16 Expiration     Top 5 High Yield
1.SPY dividend 6.SPX dividend   1.UVXY dividend
2.EWZ dividend 7.FXI dividend   2.SKX dividend
3.EEM dividend 8.VXX dividend   3.CLF dividend
4.PBR dividend 9.IWM dividend   4.CGC dividend
5.QQQ dividend 10.BAC dividend   5.SNAP dividend

Want more examples? ARQL Dividend | ARRS Dividend