ARE Dividend

Although ARE has a dividend of 1.32 with an ex-dividend date of Sep 30, you can sell covered calls on Alexandria Real Estate Equities, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 10:00 AM ET):

Alexandria Real Estate Equities, Inc. (ARE)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
85.85	86.02	86.01	+0.44	104K	-	15B

ARE Dividend-Like Income Using Covered Calls

With ARE at 86.01, 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%	2.58	0.7
5%	4.30	1.2
10%	8.60	2.4

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 ARE Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	87.50	1.95	32	6.1	1.48 (1.7%)
Sep 19	87.50	0.15	4	3.8	1.48 (1.7%)

5% Yield On ARE Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	87.50	1.95	32	6.1	1.48 (1.7%)
Sep 19	87.50	0.15	4	3.8	1.48 (1.7%)

10% Yield On ARE Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	87.50	1.95	32	6.1	1.48 (1.7%)
Sep 19	87.50	0.15	4	3.8	1.48 (1.7%)

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Want more examples? ARDX Dividend | ARES Dividend