AMC Dividend Type Payments

AMC Entertainment Holdings, Inc. Class A dividend

Although AMC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on AMC Entertainment Holdings, Inc. Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 12:05 PM ET):

AMC Entertainment Holdings, Inc. Class A (AMC)
Bid Ask Last Change Volume P/E Market Cap
4.41 4.42 4.41 -0.11 6.0M - 4.0B

AMC Dividend-Like Income Using Covered Calls

With AMC at 4.41, 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% 0.13 0.0
5% 0.22 0.1
10% 0.44 0.1

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 AMC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 1 4.50 0.37 38 1.0 0.08 (1.8%)
Oct 4 10.00 0.01 10 0.1 5.58 (126.5%)
5% Yield On AMC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 1 4.50 0.37 38 1.0 0.08 (1.8%)
Oct 4 10.00 0.01 10 0.1 5.58 (126.5%)
10% Yield On AMC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 1 4.50 0.37 38 1.0 0.08 (1.8%)
Oct 4 4.50 0.17 10 1.7 0.08 (1.8%)

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