AGX Dividend

Although AGX has a dividend of 0.50 with an ex-dividend date of Jan 22, you can sell covered calls on Argan, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 3:10 PM ET):

Argan, Inc. (AGX)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
323.00	343.50	328.26	-4.97	74K	39	4.6B

AGX Dividend-Like Income Using Covered Calls

With AGX at 328.26, 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%	9.85	2.7
5%	16.41	4.5
10%	32.83	9.0

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 AGX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 16	350.00	10.70	24	44.6	6.50 (2.0%)
Apr 17	350.00	40.30	115	35.0	6.50 (2.0%)

5% Yield On AGX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 16	350.00	10.70	24	44.6	6.50 (2.0%)
Apr 17	350.00	40.30	115	35.0	6.50 (2.0%)

10% Yield On AGX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 16	350.00	10.70	24	44.6	6.50 (2.0%)
Apr 17	350.00	40.30	115	35.0	6.50 (2.0%)

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Want more examples? AGRO Dividend | AGYS Dividend