AP Dividend Type Payments
Although AP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Ampco-Pittsburgh Corporation 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):
Ampco-Pittsburgh Corporation (AP) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
1.69 |
1.97 |
1.78 |
+0.03 |
26K |
- |
0.0B |
AP Dividend-Like Income Using Covered Calls
With AP at 1.78, 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% |
0.05 |
0.0 |
5% |
0.09 |
0.0 |
10% |
0.18 |
0.0 |
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 AP Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Dec 20 |
2.50 |
0.20 |
71 |
0.3 |
0.53 (29.8%) |
Mar 21 |
2.50 |
0.30 |
162 |
0.2 |
0.53 (29.8%) |
5% Yield On AP Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Dec 20 |
2.50 |
0.20 |
71 |
0.3 |
0.53 (29.8%) |
Mar 21 |
2.50 |
0.30 |
162 |
0.2 |
0.53 (29.8%) |
10% Yield On AP Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Dec 20 |
2.50 |
0.20 |
71 |
0.3 |
0.53 (29.8%) |
Mar 21 |
2.50 |
0.30 |
162 |
0.2 |
0.53 (29.8%) |
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