AVL Dividend Type Payments
Although AVL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion Daily AVGO Bull 2X Shares 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):
| Direxion Daily AVGO Bull 2X Shares (AVL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 33.08 | 33.24 | 33.24 | +0.91 | 266K | - | 0.0B |
AVL Dividend-Like Income Using Covered Calls
With AVL at 33.24, 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% | 1.00 | 0.3 |
| 5% | 1.66 | 0.5 |
| 10% | 3.32 | 0.9 |
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 AVL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 34.00 | 1.85 | 54 | 3.4 | 0.76 (2.3%) | |
| Jul 18 | 34.00 | 0.60 | 26 | 2.3 | 0.76 (2.3%) | |
| 5% Yield On AVL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 34.00 | 1.85 | 54 | 3.4 | 0.76 (2.3%) | |
| Jul 18 | 34.00 | 0.60 | 26 | 2.3 | 0.76 (2.3%) | |
| 10% Yield On AVL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 34.00 | 1.85 | 54 | 3.4 | 0.76 (2.3%) | |
| Jul 18 | 34.00 | 0.60 | 26 | 2.3 | 0.76 (2.3%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | TSLA dividend | 1. | COGT dividend | |
| 2. | NVDA dividend | 7. | IWM dividend | 2. | ALT dividend | |
| 3. | SPY dividend | 8. | FXI dividend | 3. | RUN dividend | |
| 4. | GLD dividend | 9. | AAPL dividend | 4. | APLD dividend | |
| 5. | TLT dividend | 10. | CLSK dividend | 5. | HTZ dividend | |
Want more examples? AVIV Dividend | AVMU Dividend
