AZPN Dividend Type Payments

Aspen Tech, Inc dividend

Although AZPN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Aspen Tech, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 2:50 PM ET):

Aspen Tech, Inc (AZPN)
Bid Ask Last Change Volume P/E Market Cap
83.28 83.36 83.27 +83.27 559K - 0.0B

AZPN Dividend-Like Income Using Covered Calls

With AZPN at 83.27, 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% 2.50 0.7
5% 4.16 1.1
10% 8.33 2.3

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 AZPN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 90.00 0.30 12 2.5 6.64 (8.0%)
Jan 18 95.00 0.40 40 1.0 11.64 (14.0%)
5% Yield On AZPN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 90.00 0.30 12 2.5 6.64 (8.0%)
Jan 18 90.00 1.25 40 3.1 6.64 (8.0%)
10% Yield On AZPN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 90.00 0.30 12 2.5 6.64 (8.0%)
Jan 18 90.00 1.25 40 3.1 6.64 (8.0%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.INVH dividend 6.SILJ dividend   1. dividend
2.CB dividend 7.ISRG dividend   2. dividend
3.SHO dividend 8.CCRN dividend   3. dividend
4.IPI dividend 9.SJW dividend   4. dividend
5.CBSH dividend 10.IUSV dividend   5. dividend

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