AGI Dividend Type Payments

Alamos Gold Inc. Class A Common Shares dividend

Although AGI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Alamos Gold Inc. Class A Common Shares 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):

Alamos Gold Inc. Class A Common Shares (AGI)
Bid Ask Last Change Volume P/E Market Cap
38.90 39.82 38.90 -1.40 3.8M - 16B

AGI Dividend-Like Income Using Covered Calls

With AGI at 38.90, 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% 1.17 0.3
5% 1.95 0.5
10% 3.89 1.1

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 AGI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 18 40.00 3.30 154 2.1 0.18 (0.5%)
Sep 18 40.00 6.00 246 2.4 0.18 (0.5%)
5% Yield On AGI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 18 40.00 3.30 154 2.1 0.18 (0.5%)
Sep 18 40.00 6.00 246 2.4 0.18 (0.5%)
10% Yield On AGI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 18 40.00 3.30 154 2.1 0.18 (0.5%)
Sep 18 40.00 6.00 246 2.4 0.18 (0.5%)

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