AZEK Dividend Type Payments
Although AZEK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on The AZEK Company Inc. Class A 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):
| The AZEK Company Inc. Class A (AZEK) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 43.75 |
48.90 |
45.67 |
-1.09 |
1.6M |
41 |
6.8B |
AZEK Dividend-Like Income Using Covered Calls
With AZEK at 45.67, 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% |
1.37 |
0.4 |
| 5% |
2.28 |
0.6 |
| 10% |
4.57 |
1.3 |
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 AZEK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
50.00 |
0.90 |
36 |
2.5 |
1.10 (2.4%) |
| Jan 17 |
50.00 |
1.20 |
64 |
1.9 |
1.10 (2.4%) |
| 5% Yield On AZEK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
50.00 |
0.90 |
36 |
2.5 |
1.10 (2.4%) |
| Jan 17 |
50.00 |
1.20 |
64 |
1.9 |
1.10 (2.4%) |
| 10% Yield On AZEK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
50.00 |
0.90 |
36 |
2.5 |
1.10 (2.4%) |
| Jan 17 |
50.00 |
1.20 |
64 |
1.9 |
1.10 (2.4%) |
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