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 Fri 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
2.16 2.18 2.17 -0.06 31.4M 14 35B

ABEV Dividend-Like Income Using Covered Calls

With ABEV at 2.17, 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 0.10 435 0.0 0.32 (14.7%)
Jan 15 2.50 0.15 799 0.0 0.32 (14.7%)

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