ARW Dividend Type Payments

Arrow Electronics, Inc. dividend

Although ARW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Arrow Electronics, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 10:25 AM ET):

Arrow Electronics, Inc. (ARW)
Bid Ask Last Change Volume P/E Market Cap
114.08 114.56 114.32 +1.84 75K 12 5.8B

ARW Dividend-Like Income Using Covered Calls

With ARW at 114.32, 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% 3.43 0.9
5% 5.72 1.6
10% 11.43 3.1

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 ARW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 115.00 0.50 12 4.2 0.44 (0.4%)
Jan 16 115.00 3.20 40 8.0 0.44 (0.4%)
5% Yield On ARW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 115.00 0.50 12 4.2 0.44 (0.4%)
Jan 16 115.00 3.20 40 8.0 0.44 (0.4%)
10% Yield On ARW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 115.00 0.50 12 4.2 0.44 (0.4%)
Jan 16 115.00 3.20 40 8.0 0.44 (0.4%)

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