ABEV Dividend

Although ABEV has a dividend of 0.02 with an ex-dividend date of Aug 8, 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 Tue 3:05 PM ET):

Ambev S.A. American Depositary Shares (Each representing 1 Common Share) (ABEV)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
2.22	2.23	2.23	+0.02	22.2M	13	35B

ABEV Dividend-Like Income Using Covered Calls

With ABEV at 2.23, 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%	0.11	0.0
10%	0.22	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
Jan 16	2.50	0.05	165	0.0	0.27 (12.1%)
Jan 15	2.50	0.15	529	0.0	0.27 (12.1%)

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