AVAV Dividend Type Payments
Although AVAV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on AeroVironment, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 11:55 AM ET):
| AeroVironment, Inc. (AVAV) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 260.40 | 260.94 | 260.59 | -4.41 | 619K | 171 | 12B |
AVAV Dividend-Like Income Using Covered Calls
With AVAV at 260.59, 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% | 7.82 | 2.1 |
| 5% | 13.03 | 3.6 |
| 10% | 26.06 | 7.1 |
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 AVAV Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 260.00 | 14.40 | 32 | 42.1 | 0.00 (0.0%) | |
| Jul 18 | 260.00 | 5.10 | 4 | 104.0 | 0.00 (0.0%) | |
| 5% Yield On AVAV Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 260.00 | 14.40 | 32 | 42.1 | 0.00 (0.0%) | |
| Jul 18 | 260.00 | 5.10 | 4 | 104.0 | 0.00 (0.0%) | |
| 10% Yield On AVAV Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 260.00 | 14.40 | 32 | 42.1 | 0.00 (0.0%) | |
| Jul 18 | 260.00 | 5.10 | 4 | 104.0 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | AAOI dividend | |
| 2. | SLV dividend | 7. | GLD dividend | 2. | CELC dividend | |
| 3. | SPY dividend | 8. | TLT dividend | 3. | LNTH dividend | |
| 4. | TSLA dividend | 9. | QQQ dividend | 4. | LMND dividend | |
| 5. | AAPL dividend | 10. | AMZN dividend | 5. | STNG dividend | |
Want more examples? AVA Dividend | AVB Dividend
