ARES Dividend Type Payments
Although ARES has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Ares Management Corporation Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| Ares Management Corporation Class A (ARES) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 120.00 | 143.00 | 141.24 | +1.64 | 1.2M | 64 | 44B |
ARES Dividend-Like Income Using Covered Calls
With ARES at 141.24, 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% | 4.24 | 1.2 |
| 5% | 7.06 | 1.9 |
| 10% | 14.12 | 3.9 |
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 ARES Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 145.00 | 4.20 | 30 | 14.0 | 2.00 (1.4%) | |
| Sep 19 | 145.00 | 13.80 | 156 | 8.8 | 2.00 (1.4%) | |
| 5% Yield On ARES Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 145.00 | 4.20 | 30 | 14.0 | 2.00 (1.4%) | |
| Sep 19 | 145.00 | 13.80 | 156 | 8.8 | 2.00 (1.4%) | |
| 10% Yield On ARES Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 145.00 | 4.20 | 30 | 14.0 | 2.00 (1.4%) | |
| Sep 19 | 145.00 | 13.80 | 156 | 8.8 | 2.00 (1.4%) | |
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | STLA dividend | |
| 2. | SPY dividend | 7. | GLD dividend | 2. | UPST dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | NBIS dividend | |
| 4. | SLV dividend | 9. | TSLA dividend | 4. | HOOD dividend | |
| 5. | QQQ dividend | 10. | INTC dividend | 5. | RIOT dividend | |
Want more examples? ARE Dividend | ARGT Dividend
