AYI Dividend
Although AYI has a dividend of 0.17 with an ex-dividend date of Oct 17, 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 |
| 342.81 | 386.27 | 362.58 | +2.95 | 251K | 28 | 11B |
AYI Dividend-Like Income Using Covered Calls
With AYI at 362.58, 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% | 10.88 | 3.0 |
| 5% | 18.13 | 5.0 |
| 10% | 36.26 | 9.9 |
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 AYI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 21 | 390.00 | 2.85 | 39 | 7.3 | 3.73 (1.0%) | |
| May 15 | 390.00 | 23.70 | 214 | 11.1 | 3.73 (1.0%) | |
| 5% Yield On AYI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 21 | 390.00 | 2.85 | 39 | 7.3 | 3.73 (1.0%) | |
| May 15 | 390.00 | 23.70 | 214 | 11.1 | 3.73 (1.0%) | |
| 10% Yield On AYI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 15 | 390.00 | 23.70 | 214 | 11.1 | 3.73 (1.0%) | |
| Feb 20 | 390.00 | 15.10 | 130 | 11.6 | 3.73 (1.0%) | |
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| Top 10 Open Interest For Oct 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | AIV dividend | |
| 2. | IBIT dividend | 7. | INTC dividend | 2. | AREC dividend | |
| 3. | GLD dividend | 8. | AMZN dividend | 3. | LAC dividend | |
| 4. | SPY dividend | 9. | QQQ dividend | 4. | UAMY dividend | |
| 5. | TSLA dividend | 10. | IWM dividend | 5. | HIVE dividend | |
Want more examples? AXTI Dividend | AZN Dividend
