AVY Dividend

Avery Dennison Corp dividend

Although AVY has a dividend of 0.52 with an ex-dividend date of Mar 5, you can sell covered calls on Avery Dennison Corp 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):

Avery Dennison Corp (AVY)
Bid Ask Last Change Volume P/E Market Cap
64.96 110.00 106.43 +1.45 532K 30 9.1B

AVY Dividend-Like Income Using Covered Calls

With AVY at 106.43, 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% 3.19 0.9
5% 5.32 1.5
10% 10.64 2.9

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 AVY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 110.00 0.30 24 1.3 0.00 (0.0%)
Apr 18 110.00 1.20 58 2.1 0.00 (0.0%)
5% Yield On AVY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 110.00 1.20 58 2.1 0.00 (0.0%)
Jul 19 110.00 3.60 150 2.4 0.00 (0.0%)

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