AVD Dividend Type Payments
Although AVD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on American Vanguard Corporation ($0.10 Par Value) 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):
| American Vanguard Corporation ($0.10 Par Value) (AVD) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 4.00 | 4.30 | 4.19 | +0.09 | 189K | - | 0.1B |
AVD Dividend-Like Income Using Covered Calls
With AVD at 4.19, 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% | 0.13 | 0.0 |
| 5% | 0.21 | 0.1 |
| 10% | 0.42 | 0.1 |
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 AVD Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 5.00 | 0.05 | 38 | 0.1 | 0.70 (16.7%) | |
| Nov 21 | 5.00 | 0.10 | 136 | 0.1 | 0.70 (16.7%) | |
| 5% Yield On AVD Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 5.00 | 0.05 | 38 | 0.1 | 0.70 (16.7%) | |
| Nov 21 | 5.00 | 0.10 | 136 | 0.1 | 0.70 (16.7%) | |
| 10% Yield On AVD Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 5.00 | 0.05 | 38 | 0.1 | 0.70 (16.7%) | |
| Feb 20 | 5.00 | 0.30 | 227 | 0.1 | 0.70 (16.7%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | RARE dividend | |
| 2. | SLV dividend | 7. | AAPL dividend | 2. | TMC dividend | |
| 3. | SPY dividend | 8. | TLT dividend | 3. | CELC dividend | |
| 4. | TSLA dividend | 9. | IBIT dividend | 4. | AEVA dividend | |
| 5. | IWM dividend | 10. | QQQ dividend | 5. | PRAX dividend | |
Want more examples? AVB Dividend | AVDE Dividend
