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 Tue 3:30 PM ET):

Alkermes plc - Ordinary Shares (ALKS)
Bid Ask Last Change Volume P/E Market Cap
29.04 29.06 29.05 +0.44 1.3M 14 4.7B

ALKS Dividend-Like Income Using Covered Calls

With ALKS at 29.05, 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% 0.87 0.2
5% 1.45 0.4
10% 2.91 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 29.00 2.50 46 5.3 0.00 (0.0%)
Jul 18 29.00 1.00 18 5.2 0.00 (0.0%)
5% Yield On ALKS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 29.00 2.50 46 5.3 0.00 (0.0%)
Jul 18 29.00 1.00 18 5.2 0.00 (0.0%)
10% Yield On ALKS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 29.00 2.50 46 5.3 0.00 (0.0%)
Jul 18 29.00 1.00 18 5.2 0.00 (0.0%)

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