ALKS Dividend Type Payments
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 |
| 26.61 | 29.25 | 29.05 | +0.79 | 1.5M | 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 | |
| Oct 17 | 30.00 | 1.80 | 64 | 2.8 | 0.75 (2.6%) | |
| Sep 19 | 32.00 | 1.10 | 36 | 3.1 | 2.75 (9.5%) | |
| 5% Yield On ALKS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 30.00 | 1.80 | 64 | 2.8 | 0.75 (2.6%) | |
| Sep 19 | 32.00 | 1.10 | 36 | 3.1 | 2.75 (9.5%) | |
| 10% Yield On ALKS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 30.00 | 1.80 | 64 | 2.8 | 0.75 (2.6%) | |
| Sep 19 | 32.00 | 1.10 | 36 | 3.1 | 2.75 (9.5%) | |
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| Top 10 Open Interest For Sep 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | ATYR dividend | |
| 2. | PCG dividend | 7. | FXI dividend | 2. | IREN dividend | |
| 3. | IWM dividend | 8. | QQQ dividend | 3. | KSS dividend | |
| 4. | EEM dividend | 9. | IBIT dividend | 4. | VKTX dividend | |
| 5. | SPY dividend | 10. | KWEB dividend | 5. | BBAI dividend | |
Want more examples? ALK Dividend | ALL Dividend
