AIT Dividend Type Payments
Although AIT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Applied Industrial Technologies, Inc. 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):
| Applied Industrial Technologies, Inc. (AIT) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 208.88 | 226.29 | 221.86 | +0.88 | 182K | 23 | 8.5B |
AIT Dividend-Like Income Using Covered Calls
With AIT at 221.86, 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% | 6.66 | 1.8 |
| 5% | 11.09 | 3.0 |
| 10% | 22.19 | 6.1 |
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 AIT Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 15 | 230.00 | 5.80 | 43 | 13.5 | 3.71 (1.7%) | |
| Oct 18 | 230.00 | 0.90 | 15 | 6.0 | 3.71 (1.7%) | |
| 5% Yield On AIT Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 15 | 230.00 | 5.80 | 43 | 13.5 | 3.71 (1.7%) | |
| Oct 18 | 230.00 | 0.90 | 15 | 6.0 | 3.71 (1.7%) | |
| 10% Yield On AIT Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 15 | 230.00 | 5.80 | 43 | 13.5 | 3.71 (1.7%) | |
| May 16 | 230.00 | 17.90 | 225 | 8.0 | 3.71 (1.7%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | CLOV dividend | |
| 2. | IWM dividend | 7. | SLV dividend | 2. | AEHR dividend | |
| 3. | SPY dividend | 8. | SMCI dividend | 3. | APLD dividend | |
| 4. | FXI dividend | 9. | KWEB dividend | 4. | CPRI dividend | |
| 5. | QQQ dividend | 10. | HYG dividend | 5. | WOLF dividend | |
Want more examples? AIRG Dividend | AIV Dividend
