AVT Dividend
Although AVT has a dividend of 0.35 with an ex-dividend date of Sep 17, you can sell covered calls on Avnet, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| Avnet, Inc. (AVT) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 49.46 | 86.16 | 53.94 | +0.81 | 881K | 19 | 4.4B |
AVT Dividend-Like Income Using Covered Calls
With AVT at 53.94, 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% | 1.62 | 0.4 |
| 5% | 2.70 | 0.7 |
| 10% | 5.39 | 1.5 |
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:
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| Top 10 Open Interest For Sep 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IBIT dividend | 1. | RNA dividend | |
| 2. | PCG dividend | 7. | QQQ dividend | 2. | ATYR dividend | |
| 3. | IWM dividend | 8. | SLV dividend | 3. | ADBE dividend | |
| 4. | SPY dividend | 9. | FXI dividend | 4. | ASTS dividend | |
| 5. | EEM dividend | 10. | TSLA dividend | 5. | RH dividend | |
Want more examples? AVSF Dividend | AVTR Dividend
