AWI Dividend Type Payments
Although AWI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Armstrong World Industries Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:15 PM ET):
| Armstrong World Industries Inc (AWI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 115.50 | 115.73 | 115.70 | -0.80 | 62K | 23 | 5.1B |
AWI Dividend-Like Income Using Covered Calls
With AWI at 115.70, 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% | 3.47 | 1.0 |
| 5% | 5.79 | 1.6 |
| 10% | 11.57 | 3.2 |
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 AWI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 19 | 120.00 | 0.05 | 4 | 1.3 | 4.27 (3.7%) | |
| May 17 | 120.00 | 2.55 | 32 | 8.0 | 4.27 (3.7%) | |
| 5% Yield On AWI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 17 | 120.00 | 2.55 | 32 | 8.0 | 4.27 (3.7%) | |
| Jun 21 | 120.00 | 3.70 | 67 | 5.5 | 4.27 (3.7%) | |
| 10% Yield On AWI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 17 | 120.00 | 2.55 | 32 | 8.0 | 4.27 (3.7%) | |
| Jun 21 | 120.00 | 3.70 | 67 | 5.5 | 4.27 (3.7%) | |
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| Top 10 Open Interest For Apr 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | TLT dividend | 1. | INFY dividend | |
| 2. | IWM dividend | 7. | FXI dividend | 2. | ELV dividend | |
| 3. | SLV dividend | 8. | AAPL dividend | 3. | ASML dividend | |
| 4. | QQQ dividend | 9. | HYG dividend | 4. | FSLY dividend | |
| 5. | TSLA dividend | 10. | NVDA dividend | 5. | SNAP dividend | |
Want more examples? AWAY Dividend | AWK Dividend
