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 Fri 4:16 PM ET):
Arm Holdings plc - American Depositary Shares (ARM) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
151.11 | 151.30 | 151.46 | +2.13 | 3.4M | 515 | 0.0B |
ARM Dividend-Like Income Using Covered Calls
With ARM at 151.46, 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% | 4.54 | 1.2 |
5% | 7.57 | 2.1 |
10% | 15.15 | 4.1 |
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 ARM Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 1 | 152.50 | 6.90 | 22 | 31.4 | 1.20 (0.8%) | |
Nov 8 | 152.50 | 12.30 | 29 | 42.4 | 1.20 (0.8%) |
5% Yield On ARM Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 1 | 152.50 | 6.90 | 22 | 31.4 | 1.20 (0.8%) | |
Nov 8 | 152.50 | 12.30 | 29 | 42.4 | 1.20 (0.8%) |
10% Yield On ARM Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 1 | 152.50 | 6.90 | 22 | 31.4 | 1.20 (0.8%) | |
Nov 8 | 152.50 | 12.30 | 29 | 42.4 | 1.20 (0.8%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | EEM dividend | 1. | DJT dividend | |
2. | IWM dividend | 7. | SLV dividend | 2. | CPRI dividend | |
3. | FXI dividend | 8. | TSLA dividend | 3. | WOLF dividend | |
4. | SPY dividend | 9. | SMCI dividend | 4. | ARDX dividend | |
5. | QQQ dividend | 10. | HYG dividend | 5. | SAVA dividend |
Want more examples? ARLP Dividend | ARMK Dividend