AEE Dividend
Although AEE has a dividend of 0.71 with an ex-dividend date of Dec 9, you can sell covered calls on Ameren Corporation 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):
| Ameren Corporation (AEE) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 100.00 | 105.91 | 104.65 | +2.64 | 2.1M | 22 | 28B |
AEE Dividend-Like Income Using Covered Calls
With AEE at 104.65, 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% | 3.14 | 0.9 |
| 5% | 5.23 | 1.4 |
| 10% | 10.47 | 2.9 |
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 AEE Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 110.00 | 0.45 | 43 | 1.0 | 4.09 (3.9%) | |
| Jan 16 | 110.00 | 1.00 | 71 | 1.4 | 4.09 (3.9%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | TLT dividend | 1. | ONDS dividend | |
| 2. | NVDA dividend | 7. | ASST dividend | 2. | NBIS dividend | |
| 3. | KVUE dividend | 8. | INTC dividend | 3. | OKLO dividend | |
| 4. | SLV dividend | 9. | SPY dividend | 4. | WULF dividend | |
| 5. | GLD dividend | 10. | HYG dividend | 5. | BE dividend | |
Want more examples? ADVM Dividend | AEG Dividend
