AVB Dividend Type Payments
Although AVB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on AvalonBay Communities, Inc. 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):
| AvalonBay Communities, Inc. (AVB) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 175.75 | 178.59 | 178.77 | +3.01 | 1.2M | 21 | 25B |
AVB Dividend-Like Income Using Covered Calls
With AVB at 178.77, 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% | 5.36 | 1.5 |
| 5% | 8.94 | 2.4 |
| 10% | 17.88 | 4.9 |
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 AVB Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 180.00 | 4.50 | 85 | 5.3 | 1.41 (0.8%) | |
| Jul 17 | 180.00 | 9.70 | 176 | 5.5 | 1.41 (0.8%) | |
| 5% Yield On AVB Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 180.00 | 4.50 | 85 | 5.3 | 1.41 (0.8%) | |
| Jul 17 | 180.00 | 9.70 | 176 | 5.5 | 1.41 (0.8%) | |
| 10% Yield On AVB Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 180.00 | 4.50 | 85 | 5.3 | 1.41 (0.8%) | |
| Jul 17 | 180.00 | 9.70 | 176 | 5.5 | 1.41 (0.8%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | KWEB dividend | 6. | QQQ dividend | 1. | OCUL dividend | |
| 2. | SLV dividend | 7. | INTC dividend | 2. | ONDS dividend | |
| 3. | NVDA dividend | 8. | AAPL dividend | 3. | SOC dividend | |
| 4. | IBIT dividend | 9. | HYG dividend | 4. | HYMC dividend | |
| 5. | CORZ dividend | 10. | SPY dividend | 5. | QURE dividend | |
Want more examples? AVAV Dividend | AVD Dividend
