ABEV Dividend Type Payments
Although ABEV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Ambev S.A. American Depositary Shares (Each representing 1 Common Share) 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):
| Ambev S.A. American Depositary Shares (Each representing 1 Common Share) (ABEV) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 2.47 |
2.48 |
2.47 |
-0.02 |
8.2M |
16 |
39B |
ABEV Dividend-Like Income Using Covered Calls
With ABEV at 2.47, 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% |
0.07 |
0.0 |
| 5% |
0.12 |
0.0 |
| 10% |
0.25 |
0.1 |
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 ABEV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
2.50 |
0.05 |
44 |
0.1 |
0.02 (0.8%) |
| Oct 17 |
2.50 |
0.10 |
107 |
0.1 |
0.02 (0.8%) |
| 5% Yield On ABEV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
2.50 |
0.05 |
44 |
0.1 |
0.02 (0.8%) |
| Oct 17 |
2.50 |
0.10 |
107 |
0.1 |
0.02 (0.8%) |
| 10% Yield On ABEV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
2.50 |
0.05 |
44 |
0.1 |
0.02 (0.8%) |
| Oct 17 |
2.50 |
0.10 |
107 |
0.1 |
0.02 (0.8%) |
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