AWR Dividend Type Payments

American States Water Co dividend

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

American States Water Co (AWR)
Bid Ask Last Change Volume P/E Market Cap
66.50 70.16 69.64 +0.30 140K 41 2.5B

AWR Dividend-Like Income Using Covered Calls

With AWR at 69.64, 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% 2.09 0.6
5% 3.48 1.0
10% 6.96 1.9

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 AWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 70.00 1.25 29 3.8 0.00 (0.0%)
Jun 21 75.00 1.10 127 0.9 4.84 (7.0%)
5% Yield On AWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 70.00 1.25 29 3.8 0.00 (0.0%)
Jun 21 70.00 3.00 127 2.2 0.00 (0.0%)
10% Yield On AWR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 70.00 1.25 29 3.8 0.00 (0.0%)
Jun 21 70.00 3.00 127 2.2 0.00 (0.0%)

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Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
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3.SPY dividend 8.XOP dividend   3.KPTI dividend
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5.QQQ dividend 10.JD dividend   5.VKTX dividend

Want more examples? AWK Dividend | AWRE Dividend