MAA Dividend
Although MAA has a dividend of 1.47 with an ex-dividend date of Apr 12, you can sell covered calls on Mid-America Apartment Communities, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 12:25 PM ET):
Mid-America Apartment Communities, Inc. (MAA) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
131.86 | 131.91 | 131.88 | +1.08 | 179K | 28 | 15B |
MAA Dividend-Like Income Using Covered Calls
With MAA at 131.88, 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% | 3.96 | 1.1 |
5% | 6.59 | 1.8 |
10% | 13.19 | 3.6 |
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 MAA Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 19 | 135.00 | 0.65 | 23 | 2.8 | 3.09 (2.3%) | |
May 17 | 135.00 | 2.25 | 51 | 4.4 | 3.09 (2.3%) |
5% Yield On MAA Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 19 | 135.00 | 0.65 | 23 | 2.8 | 3.09 (2.3%) | |
May 17 | 135.00 | 2.25 | 51 | 4.4 | 3.09 (2.3%) |
10% Yield On MAA Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 135.00 | 2.25 | 51 | 4.4 | 3.09 (2.3%) | |
Jun 21 | 135.00 | 3.40 | 86 | 4.0 | 3.09 (2.3%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
Top 10 Open Interest For Apr 19 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | TLT dividend | 1. | MRNS dividend | |
2. | SPY dividend | 7. | HYG dividend | 2. | LUNR dividend | |
3. | QQQ dividend | 8. | AAPL dividend | 3. | SOUN dividend | |
4. | FXI dividend | 9. | EEM dividend | 4. | RILY dividend | |
5. | SLV dividend | 10. | TSLA dividend | 5. | CIFR dividend |
Want more examples? MA Dividend | MAC Dividend