AVAV Dividend Type Payments

AEROVIRONMENT dividend

Although AVAV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on AEROVIRONMENT to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

AEROVIRONMENT (AVAV)
Bid Ask Last Change Volume P/E Market Cap
77.00 82.17 81.42 -1.05 206K 96 2.0B

AVAV Dividend-Like Income Using Covered Calls

With AVAV at 81.42, 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% 2.44 0.7
5% 4.07 1.1
10% 8.14 2.2

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 AVAV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 85.00 0.05 3 1.7 2.83 (3.5%)
Sep 21 100.00 0.65 38 1.7 17.83 (21.9%)
5% Yield On AVAV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 85.00 0.05 3 1.7 2.83 (3.5%)
Sep 21 100.00 0.65 38 1.7 17.83 (21.9%)
10% Yield On AVAV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 95.00 1.25 38 3.3 12.83 (15.8%)
Dec 21 95.00 3.90 129 3.0 12.83 (15.8%)

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Want more examples? AVA Dividend | AVB Dividend