ALKS Dividend Type Payments

Alkermes plc - Ordinary Shares dividend

Although ALKS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Alkermes plc - Ordinary Shares 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):

Alkermes plc - Ordinary Shares (ALKS)
Bid Ask Last Change Volume P/E Market Cap
28.70 29.40 29.22 -0.14 1.3M 14 4.8B

ALKS Dividend-Like Income Using Covered Calls

With ALKS at 29.22, 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% 0.88 0.2
5% 1.46 0.4
10% 2.92 0.8

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 ALKS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 30.00 1.45 29 5.0 0.60 (2.1%)
Sep 19 30.00 1.70 64 2.7 0.60 (2.1%)
5% Yield On ALKS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 30.00 1.45 29 5.0 0.60 (2.1%)
Sep 19 30.00 1.70 64 2.7 0.60 (2.1%)
10% Yield On ALKS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 30.00 1.45 29 5.0 0.60 (2.1%)
Sep 19 30.00 1.70 64 2.7 0.60 (2.1%)

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