ARM Dividend Type Payments
Although ARM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Arm Holdings plc - American Depositary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 10:30 AM ET):
| Arm Holdings plc - American Depositary Shares (ARM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 177.88 | 178.10 | 177.99 | +22.79 | 13.2M | 535 | 0.0B |
ARM Dividend-Like Income Using Covered Calls
With ARM at 177.99, 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% | 5.34 | 1.5 |
| 5% | 8.90 | 2.4 |
| 10% | 17.80 | 4.9 |
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 ARM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 7 | 180.00 | 12.05 | 17 | 70.9 | 1.90 (1.1%) | |
| Feb 14 | 180.00 | 12.60 | 24 | 52.5 | 1.90 (1.1%) | |
| 5% Yield On ARM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 7 | 180.00 | 12.05 | 17 | 70.9 | 1.90 (1.1%) | |
| Feb 14 | 180.00 | 12.60 | 24 | 52.5 | 1.90 (1.1%) | |
| 10% Yield On ARM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 7 | 180.00 | 12.05 | 17 | 70.9 | 1.90 (1.1%) | |
| Feb 14 | 180.00 | 12.60 | 24 | 52.5 | 1.90 (1.1%) | |
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| Top 10 Open Interest For Feb 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | QUBT dividend | |
| 2. | TLT dividend | 7. | TSLA dividend | 2. | XP dividend | |
| 3. | SPY dividend | 8. | AMZN dividend | 3. | SMCI dividend | |
| 4. | IWM dividend | 9. | AAPL dividend | 4. | SNAP dividend | |
| 5. | FXI dividend | 10. | ASHR dividend | 5. | MBLY dividend | |
Want more examples? ARLP Dividend | ARMK Dividend
