ATO Dividend Type Payments
Although ATO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Atmos Energy Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 11:40 AM ET):
| Atmos Energy Corporation (ATO) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 140.12 | 140.43 | 140.27 | -1.42 | 197K | 21 | 22B |
ATO Dividend-Like Income Using Covered Calls
With ATO at 140.27, 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% | 4.21 | 1.2 |
| 5% | 7.01 | 1.9 |
| 10% | 14.03 | 3.8 |
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 ATO Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 140.00 | 6.90 | 205 | 3.2 | 0.00 (0.0%) | |
| Apr 17 | 140.00 | 4.40 | 85 | 4.7 | 0.00 (0.0%) | |
| 5% Yield On ATO Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 140.00 | 6.90 | 205 | 3.2 | 0.00 (0.0%) | |
| Apr 17 | 140.00 | 4.40 | 85 | 4.7 | 0.00 (0.0%) | |
| 10% Yield On ATO Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 140.00 | 4.40 | 85 | 4.7 | 0.00 (0.0%) | |
| Feb 21 | 140.00 | 2.85 | 30 | 8.1 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Feb 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | QUBT dividend | |
| 2. | TLT dividend | 7. | SLV dividend | 2. | SNAP dividend | |
| 3. | SPY dividend | 8. | AMZN dividend | 3. | IONQ dividend | |
| 4. | IWM dividend | 9. | AAPL dividend | 4. | SMCI dividend | |
| 5. | FXI dividend | 10. | ASHR dividend | 5. | CLSK dividend | |
Want more examples? ATNM Dividend | ATOM Dividend
