AVY Dividend Type Payments
Although AVY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Avery Dennison Corporation 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):
| Avery Dennison Corporation (AVY) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 160.07 | 176.66 | 175.95 | -0.65 | 874K | 20 | 14B |
AVY Dividend-Like Income Using Covered Calls
With AVY at 175.95, 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% | 5.28 | 1.4 |
| 5% | 8.80 | 2.4 |
| 10% | 17.60 | 4.8 |
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 | |
| Aug 15 | 180.00 | 2.55 | 51 | 5.0 | 3.34 (1.9%) | |
| Oct 17 | 180.00 | 6.20 | 114 | 5.4 | 3.34 (1.9%) | |
| 5% Yield On AVY Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 180.00 | 2.55 | 51 | 5.0 | 3.34 (1.9%) | |
| Oct 17 | 180.00 | 6.20 | 114 | 5.4 | 3.34 (1.9%) | |
| 10% Yield On AVY Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 180.00 | 2.55 | 51 | 5.0 | 3.34 (1.9%) | |
| Oct 17 | 180.00 | 6.20 | 114 | 5.4 | 3.34 (1.9%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | COGT dividend | |
| 2. | SLV dividend | 7. | IWM dividend | 2. | CAPR dividend | |
| 3. | SPY dividend | 8. | AAPL dividend | 3. | TDOC dividend | |
| 4. | GLD dividend | 9. | FXI dividend | 4. | CRWV dividend | |
| 5. | TLT dividend | 10. | CLSK dividend | 5. | TEM dividend | |
Want more examples? AVXL Dividend | AWAY Dividend
