AIT Dividend Type Payments

Applied Industrial Technologies, Inc. dividend

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
237.90 265.31 248.92 +6.40 309K 23 9.1B

AIT Dividend-Like Income Using Covered Calls

With AIT at 248.92, 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% 7.47 2.0
5% 12.45 3.4
10% 24.89 6.8

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
Dec 19 270.00 0.80 29 2.8 4.69 (1.9%)
May 15 270.00 11.00 176 6.3 4.69 (1.9%)
5% Yield On AIT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 15 270.00 11.00 176 6.3 4.69 (1.9%)
Feb 20 270.00 4.70 92 5.1 4.69 (1.9%)

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