AYI Dividend Type Payments

Acuity Inc. dividend

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

Acuity Inc. (AYI)
Bid Ask Last Change Volume P/E Market Cap
345.80 376.43 363.98 +8.76 295K 28 11B

AYI Dividend-Like Income Using Covered Calls

With AYI at 363.98, 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% 10.92 3.0
5% 18.20 5.0
10% 36.40 10.0

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 AYI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 380.00 3.50 25 14.0 3.57 (1.0%)
May 15 380.00 25.00 172 14.5 3.57 (1.0%)
5% Yield On AYI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 380.00 3.50 25 14.0 3.57 (1.0%)
May 15 380.00 25.00 172 14.5 3.57 (1.0%)
10% Yield On AYI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 380.00 3.50 25 14.0 3.57 (1.0%)
May 15 380.00 25.00 172 14.5 3.57 (1.0%)

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