AVB Dividend Type Payments

AvalonBay Communities, Inc. dividend

Although AVB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on AvalonBay Communities, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

AvalonBay Communities, Inc. (AVB)
Bid Ask Last Change Volume P/E Market Cap
182.30 186.55 185.08 -1.70 825K 23 27B

AVB Dividend-Like Income Using Covered Calls

With AVB at 185.08, 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% 5.55 1.5
5% 9.25 2.5
10% 18.51 5.1

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 AVB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 190.00 2.50 68 3.7 3.45 (1.9%)
Sep 19 190.00 2.75 40 6.9 3.45 (1.9%)
5% Yield On AVB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 190.00 2.50 68 3.7 3.45 (1.9%)
Sep 19 190.00 2.75 40 6.9 3.45 (1.9%)
10% Yield On AVB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 190.00 2.75 40 6.9 3.45 (1.9%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For Aug 15 Expiration     Top 5 High Yield
1.NVDA dividend 6.TSLA dividend   1.MBX dividend
2.SLV dividend 7.GLD dividend   2.FLNC dividend
3.SPY dividend 8.AMZN dividend   3.CRML dividend
4.IWM dividend 9.INTC dividend   4.AAP dividend
5.IBIT dividend 10.QQQ dividend   5.ASTS dividend

Want more examples? AVAV Dividend | AVD Dividend