AMH Dividend Type Payments
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 Thu 12:05 PM ET):
American Homes 4 Rent Common Shares of Beneficial Interest (AMH) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
34.97 | 34.99 | 34.99 | -0.26 | 670K | 33 | 13B |
AMH Dividend-Like Income Using Covered Calls
With AMH at 34.99, 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% | 1.05 | 0.3 |
5% | 1.75 | 0.5 |
10% | 3.50 | 1.0 |
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 | |
Aug 15 | 35.00 | 0.45 | 16 | 2.8 | 0.01 (0.0%) | |
Dec 19 | 35.00 | 0.95 | 142 | 0.7 | 0.01 (0.0%) |
5% Yield On AMH Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 15 | 35.00 | 0.45 | 16 | 2.8 | 0.01 (0.0%) | |
Dec 19 | 35.00 | 0.95 | 142 | 0.7 | 0.01 (0.0%) |
10% Yield On AMH Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 15 | 35.00 | 0.45 | 16 | 2.8 | 0.01 (0.0%) |
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Want more examples? AMGN Dividend | AMKR Dividend