AOS Dividend

Although AOS has a dividend of 0.34 with an ex-dividend date of Oct 31, you can sell covered calls on A.O. Smith Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 3:00 PM ET):

A.O. Smith Corporation (AOS)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
82.32	82.36	82.33	+1.47	630K	21	12B

AOS Dividend-Like Income Using Covered Calls

With AOS at 82.33, 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%	2.47	0.7
5%	4.12	1.1
10%	8.23	2.3

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 AOS Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Nov 15	85.00	1.75	33	5.3	2.64 (3.2%)
Oct 18	85.00	0.10	5	2.0	2.64 (3.2%)

5% Yield On AOS Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Nov 15	85.00	1.75	33	5.3	2.64 (3.2%)
Oct 18	85.00	0.10	5	2.0	2.64 (3.2%)

10% Yield On AOS Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Nov 15	85.00	1.75	33	5.3	2.64 (3.2%)
Jan 17	85.00	3.40	96	3.5	2.64 (3.2%)

Want to increase dividends with covered calls? Sign Up For A Free Trial

Top 10 Open Interest For Oct 18 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	QQQ dividend	1.	ANRO dividend
2.	FXI dividend	7.	EEM dividend	2.	CAPR dividend
3.	IWM dividend	8.	SLV dividend	3.	DJT dividend
4.	SPY dividend	9.	KWEB dividend	4.	ULCC dividend
5.	TSLA dividend	10.	SMCI dividend	5.	SGH dividend

Want more examples? AOR Dividend | AOSL Dividend