AMD Dividend Type Payments
Although AMD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Advanced Micro Devices, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 1:55 PM ET):
| Advanced Micro Devices, Inc. (AMD) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 231.41 | 231.47 | 231.44 | -0.39 | 33.1M | 115 | 377B |
AMD Dividend-Like Income Using Covered Calls
With AMD at 231.44, 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% | 6.94 | 1.9 |
| 5% | 11.57 | 3.2 |
| 10% | 23.14 | 6.3 |
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 AMD Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 6 | 232.50 | 12.75 | 18 | 70.8 | 1.03 (0.4%) | |
| Feb 13 | 235.00 | 13.20 | 25 | 52.8 | 3.53 (1.5%) | |
| 5% Yield On AMD Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 6 | 232.50 | 12.75 | 18 | 70.8 | 1.03 (0.4%) | |
| Feb 13 | 235.00 | 13.20 | 25 | 52.8 | 3.53 (1.5%) | |
| 10% Yield On AMD Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 6 | 232.50 | 12.75 | 18 | 70.8 | 1.03 (0.4%) | |
| Feb 13 | 235.00 | 13.20 | 25 | 52.8 | 3.53 (1.5%) | |
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| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | KWEB dividend | 6. | IWM dividend | 1. | OCUL dividend | |
| 2. | SLV dividend | 7. | AAPL dividend | 2. | NVTS dividend | |
| 3. | NVDA dividend | 8. | HYG dividend | 3. | CIFR dividend | |
| 4. | IBIT dividend | 9. | INTC dividend | 4. | EOSE dividend | |
| 5. | CORZ dividend | 10. | TLT dividend | 5. | WYFI dividend | |
Want more examples? AMCX Dividend | AME Dividend
