AMAT Dividend

Although AMAT has a dividend of 0.46 with an ex-dividend date of Aug 21, you can sell covered calls on Applied Materials, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

Applied Materials, Inc. (AMAT)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
168.00	168.08	188.24	-1.79	7.0M	23	153B

AMAT Dividend-Like Income Using Covered Calls

With AMAT at 188.24, 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%	5.65	1.5
5%	9.41	2.6
10%	18.82	5.2

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 AMAT Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 5	170.00	18.65	23	81.1	1.92 (1.0%)
Sep 12	170.00	19.15	30	63.8	1.92 (1.0%)

5% Yield On AMAT Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 5	170.00	18.65	23	81.1	1.92 (1.0%)
Sep 12	170.00	19.15	30	63.8	1.92 (1.0%)

10% Yield On AMAT Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 5	170.00	18.65	23	81.1	1.92 (1.0%)
Sep 12	170.00	19.15	30	63.8	1.92 (1.0%)

Want to increase dividends with covered calls? Sign Up For A Free Trial

Top 10 Open Interest For Aug 15 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	GLD dividend	1.	AMAT dividend
2.	SLV dividend	7.	INTC dividend	2.	RCAT dividend
3.	SPY dividend	8.	IBIT dividend	3.	QUBT dividend
4.	TSLA dividend	9.	AMZN dividend	4.	TMC dividend
5.	IWM dividend	10.	QQQ dividend	5.	ASML dividend

Want more examples? AM Dividend | AMBA Dividend