AZZ Dividend

Although AZZ has a dividend of 0.20 with an ex-dividend date of Oct 16, you can sell covered calls on AZZ Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

AZZ Inc. (AZZ)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
91.50	105.08	101.06	+2.47	451K	10	3.0B

AZZ Dividend-Like Income Using Covered Calls

With AZZ at 101.06, 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%	3.03	0.8
5%	5.05	1.4
10%	10.11	2.8

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 AZZ Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	105.00	0.20	5	2.4	0.00 (0.0%)
Nov 21	105.00	2.00	40	4.8	0.00 (0.0%)

5% Yield On AZZ Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	105.00	0.20	5	2.4	0.00 (0.0%)
Nov 21	105.00	2.00	40	4.8	0.00 (0.0%)

10% Yield On AZZ Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Nov 21	105.00	2.00	40	4.8	0.00 (0.0%)
May 15	105.00	7.20	215	3.3	0.00 (0.0%)

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Top 10 Open Interest For Oct 17 Expiration				Top 5 High Yield
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Want more examples? AZO Dividend | B Dividend