XLRN Dividend Type Payments

Acceleron Pharma, Inc dividend

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

Acceleron Pharma, Inc (XLRN)
Bid Ask Last Change Volume P/E Market Cap
41.98 45.60 41.98 -0.02 220K - 1.9B

XLRN Dividend-Like Income Using Covered Calls

With XLRN at 41.98, 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% 1.26 0.3
5% 2.10 0.6
10% 4.20 1.2

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 XLRN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 50.00 0.15 23 0.7 4.40 (10.5%)
Apr 18 55.00 0.25 57 0.4 9.40 (22.4%)
5% Yield On XLRN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 50.00 0.15 23 0.7 4.40 (10.5%)
May 17 55.00 0.60 86 0.7 9.40 (22.4%)
10% Yield On XLRN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 50.00 1.35 86 1.6 4.40 (10.5%)
Aug 16 50.00 3.10 177 1.8 4.40 (10.5%)

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Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
1.SPX dividend 6.EWZ dividend   1.Z dividend
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4.QQQ dividend 9.BAC dividend   4.IQ dividend
5.FXI dividend 10.GLD dividend   5.DBX dividend

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