ALE Dividend Type Payments
Although ALE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Allete, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 12:35 PM ET):
| Allete, Inc. (ALE) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 67.40 | 67.41 | 67.41 | 0.00 | 338K | 24 | 3.9B |
ALE Dividend-Like Income Using Covered Calls
With ALE at 67.41, 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% | 2.02 | 0.6 |
| 5% | 3.37 | 0.9 |
| 10% | 6.74 | 1.8 |
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:
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | SPY dividend | 1. | APLD dividend | |
| 2. | NVDA dividend | 7. | TLT dividend | 2. | QS dividend | |
| 3. | KVUE dividend | 8. | GLD dividend | 3. | IMNM dividend | |
| 4. | SLV dividend | 9. | QQQ dividend | 4. | RZLT dividend | |
| 5. | TSLA dividend | 10. | ASST dividend | 5. | KSS dividend | |
Want more examples? ALDX Dividend | ALEC Dividend
