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 Thu 4:16 PM ET):
| Arm Holdings plc - American Depositary Shares (ARM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 154.60 | 154.79 | 155.09 | +0.46 | 2.5M | - | 0.0B |
ARM Dividend-Like Income Using Covered Calls
With ARM at 155.09, 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% | 4.65 | 1.3 |
| 5% | 7.75 | 2.1 |
| 10% | 15.51 | 4.2 |
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 | |
| Aug 1 | 155.00 | 8.50 | 30 | 28.3 | 0.21 (0.1%) | |
| Aug 8 | 155.00 | 11.55 | 37 | 31.2 | 0.21 (0.1%) | |
| 5% Yield On ARM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 1 | 155.00 | 8.50 | 30 | 28.3 | 0.21 (0.1%) | |
| Aug 8 | 155.00 | 11.55 | 37 | 31.2 | 0.21 (0.1%) | |
| 10% Yield On ARM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 1 | 155.00 | 8.50 | 30 | 28.3 | 0.21 (0.1%) | |
| Aug 8 | 155.00 | 11.55 | 37 | 31.2 | 0.21 (0.1%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | QUBT dividend | |
| 2. | SLV dividend | 7. | AAPL dividend | 2. | COGT dividend | |
| 3. | SPY dividend | 8. | TLT dividend | 3. | IONQ dividend | |
| 4. | IWM dividend | 9. | IBIT dividend | 4. | TMC dividend | |
| 5. | TSLA dividend | 10. | QQQ dividend | 5. | SMMT dividend | |
Want more examples? ARLP Dividend | ARMH Dividend
