ALLE Dividend Type Payments

Allegion plc Ordinary Shares dividend

Although ALLE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Allegion 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):

Allegion plc Ordinary Shares (ALLE)
Bid Ask Last Change Volume P/E Market Cap
136.36 172.00 161.25 -3.27 869K 22 14B

ALLE Dividend-Like Income Using Covered Calls

With ALLE at 161.25, 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% 4.84 1.3
5% 8.06 2.2
10% 16.13 4.4

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 ALLE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 175.00 0.50 36 1.4 3.00 (1.9%)
Mar 20 175.00 4.20 127 3.3 3.00 (1.9%)
5% Yield On ALLE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 20 175.00 4.20 127 3.3 3.00 (1.9%)

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