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 Tue 4:16 PM ET):
| American Homes 4 Rent Common Shares of Beneficial Interest (AMH) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 31.29 | 32.34 | 31.82 | -0.54 | 4.1M | 27 | 12B |
AMH Dividend-Like Income Using Covered Calls
With AMH at 31.82, 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% | 0.95 | 0.3 |
| 5% | 1.59 | 0.4 |
| 10% | 3.18 | 0.9 |
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 | |
| Jun 18 | 35.00 | 0.65 | 150 | 0.4 | 2.66 (8.4%) | |
| Feb 20 | 35.00 | 0.10 | 32 | 0.3 | 2.66 (8.4%) | |
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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. | OPEN dividend | |
| 4. | IBIT dividend | 9. | INTC dividend | 4. | EOSE dividend | |
| 5. | CORZ dividend | 10. | TLT dividend | 5. | BBAI dividend | |
Want more examples? AMGN Dividend | AMKR Dividend
