AVP Dividend Type Payments

Avon Products, Inc dividend

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

Avon Products, Inc (AVP)
Bid Ask Last Change Volume P/E Market Cap
1.82 1.87 1.84 -0.04 2.7M - 0.0B

AVP Dividend-Like Income Using Covered Calls

With AVP at 1.84, 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% 0.06 0.0
5% 0.09 0.0
10% 0.18 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 AVP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 4 2.00 0.05 23 0.2 0.13 (7.1%)
Jan 11 2.00 0.05 30 0.2 0.13 (7.1%)
5% Yield On AVP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 4 2.00 0.05 23 0.2 0.13 (7.1%)
Jan 11 2.00 0.05 30 0.2 0.13 (7.1%)
10% Yield On AVP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 4 2.00 0.05 23 0.2 0.13 (7.1%)
Jan 11 2.00 0.05 30 0.2 0.13 (7.1%)

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