AVY Dividend

Avery Dennison Corporation dividend

Although AVY has a dividend of 0.94 with an ex-dividend date of Sep 3, you can sell covered calls on Avery Dennison Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

Avery Dennison Corporation (AVY)
Bid Ask Last Change Volume P/E Market Cap
156.14 176.49 165.82 -1.95 765K 19 13B

AVY Dividend-Like Income Using Covered Calls

With AVY at 165.82, 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% 4.97 1.4
5% 8.29 2.3
10% 16.58 4.5

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:

3% Yield On AVY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 180.00 1.55 78 2.0 3.51 (2.1%)
Sep 19 180.00 0.75 50 1.5 3.51 (2.1%)
5% Yield On AVY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 16 180.00 4.00 169 2.4 3.51 (2.1%)

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