AZEK Dividend Type Payments
Although AZEK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on The AZEK Company Inc. Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 10:10 AM ET):
The AZEK Company Inc. Class A (AZEK) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
46.51 |
46.57 |
46.53 |
+0.11 |
77K |
59 |
6.8B |
AZEK Dividend-Like Income Using Covered Calls
With AZEK at 46.53, 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% |
1.40 |
0.4 |
5% |
2.33 |
0.6 |
10% |
4.65 |
1.3 |
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 AZEK Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
50.00 |
0.65 |
18 |
3.6 |
3.43 (7.4%) |
Sep 20 |
50.00 |
2.90 |
144 |
2.0 |
3.43 (7.4%) |
5% Yield On AZEK Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
50.00 |
0.65 |
18 |
3.6 |
3.43 (7.4%) |
Sep 20 |
50.00 |
2.90 |
144 |
2.0 |
3.43 (7.4%) |
10% Yield On AZEK Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
50.00 |
0.65 |
18 |
3.6 |
3.43 (7.4%) |
Sep 20 |
50.00 |
2.90 |
144 |
2.0 |
3.43 (7.4%) |
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