AMH Dividend Type Payments

American Homes 4 Rent Common Shares of Beneficial Interest dividend

Although AMH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on American Homes 4 Rent Common Shares of Beneficial Interest 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):

American Homes 4 Rent Common Shares of Beneficial Interest (AMH)
Bid Ask Last Change Volume P/E Market Cap
33.05 39.80 39.31 +1.42 3.4M 35 14B

AMH Dividend-Like Income Using Covered Calls

With AMH at 39.31, 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% 1.18 0.3
5% 1.97 0.5
10% 3.93 1.1

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 AMH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 40.00 1.05 141 0.7 0.20 (0.5%)
Dec 19 40.00 1.45 232 0.6 0.20 (0.5%)
5% Yield On AMH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 40.00 1.05 141 0.7 0.20 (0.5%)
Dec 19 40.00 1.45 232 0.6 0.20 (0.5%)
10% Yield On AMH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 20 40.00 0.70 50 1.4 0.20 (0.5%)

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