AHCO Dividend Type Payments
Although AHCO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on AdaptHealth Corp. - Class A 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):
| AdaptHealth Corp. - Class A (AHCO) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 9.00 |
9.80 |
9.37 |
+0.14 |
691K |
17 |
1.2B |
AHCO Dividend-Like Income Using Covered Calls
With AHCO at 9.37, 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% |
0.28 |
0.1 |
| 5% |
0.47 |
0.1 |
| 10% |
0.94 |
0.3 |
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 AHCO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
10.00 |
0.35 |
57 |
0.6 |
0.20 (2.1%) |
| Nov 21 |
10.00 |
0.25 |
29 |
0.9 |
0.20 (2.1%) |
| 5% Yield On AHCO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
10.00 |
0.35 |
57 |
0.6 |
0.20 (2.1%) |
| Nov 21 |
10.00 |
0.25 |
29 |
0.9 |
0.20 (2.1%) |
| 10% Yield On AHCO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
10.00 |
0.35 |
57 |
0.6 |
0.20 (2.1%) |
| Nov 21 |
10.00 |
0.25 |
29 |
0.9 |
0.20 (2.1%) |
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