AVD Dividend

American Vanguard Corp dividend

Although AVD has a dividend of 0.02 with an ex-dividend date of Dec 26, you can sell covered calls on American Vanguard Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 10:15 AM ET):

American Vanguard Corp (AVD)
Bid Ask Last Change Volume P/E Market Cap
15.54 15.58 15.59 -0.09 7K - 0.0B

AVD Dividend-Like Income Using Covered Calls

With AVD at 15.59, 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% 0.47 0.1
5% 0.78 0.2
10% 1.56 0.4

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 AVD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 17.50 0.05 33 0.2 1.92 (12.3%)
Feb 15 17.50 0.15 61 0.2 1.92 (12.3%)
5% Yield On AVD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 15 17.50 0.15 61 0.2 1.92 (12.3%)
May 17 17.50 0.70 152 0.5 1.92 (12.3%)
10% Yield On AVD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 17.50 0.70 152 0.5 1.92 (12.3%)

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