ARE Dividend Type Payments
Although ARE has no upcoming (meaning, Board-approved and announced) dividends, 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 Mon 10:10 AM ET):
| Alexandria Real Estate Equities, Inc. (ARE) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 76.87 | 77.02 | 76.98 | +0.06 | 241K | 101 | 13B |
ARE Dividend-Like Income Using Covered Calls
With ARE at 76.98, 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% | 2.31 | 0.6 |
| 5% | 3.85 | 1.1 |
| 10% | 7.70 | 2.1 |
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 | |
| Aug 15 | 77.50 | 2.90 | 40 | 7.3 | 0.48 (0.6%) | |
| Oct 17 | 77.50 | 4.90 | 103 | 4.8 | 0.48 (0.6%) | |
| 5% Yield On ARE Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 77.50 | 2.90 | 40 | 7.3 | 0.48 (0.6%) | |
| Oct 17 | 77.50 | 4.90 | 103 | 4.8 | 0.48 (0.6%) | |
| 10% Yield On ARE Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 77.50 | 2.90 | 40 | 7.3 | 0.48 (0.6%) | |
| Oct 17 | 77.50 | 4.90 | 103 | 4.8 | 0.48 (0.6%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | CIFR dividend | |
| 2. | SLV dividend | 7. | AAPL dividend | 2. | TMC dividend | |
| 3. | SPY dividend | 8. | TLT dividend | 3. | ENPH dividend | |
| 4. | TSLA dividend | 9. | IBIT dividend | 4. | AEVA dividend | |
| 5. | IWM dividend | 10. | QQQ dividend | 5. | FULC dividend | |
Want more examples? ARDX Dividend | ARES Dividend
