ACB Dividend Type Payments
Although ACB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Aurora Cannabis Inc. - Common Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| Aurora Cannabis Inc. - Common Shares (ACB) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 4.69 | 4.74 | 4.69 | -0.27 | 2.2M | - | 0.3B |
ACB Dividend-Like Income Using Covered Calls
With ACB at 4.69, 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% | 0.14 | 0.0 |
| 5% | 0.23 | 0.1 |
| 10% | 0.47 | 0.1 |
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 ACB Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 16 | 5.00 | 0.20 | 26 | 0.8 | 0.26 (5.5%) | |
| Feb 20 | 10.00 | 0.05 | 61 | 0.1 | 5.26 (112.2%) | |
| 5% Yield On ACB Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 16 | 5.00 | 0.20 | 26 | 0.8 | 0.26 (5.5%) | |
| Feb 20 | 10.00 | 0.05 | 61 | 0.1 | 5.26 (112.2%) | |
| 10% Yield On ACB Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 16 | 5.00 | 0.20 | 26 | 0.8 | 0.26 (5.5%) | |
| Feb 20 | 5.00 | 0.30 | 61 | 0.5 | 0.26 (5.5%) | |
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| Top 10 Open Interest For Jan 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | AAPL dividend | 1. | OMER dividend | |
| 2. | INTC dividend | 7. | NIO dividend | 2. | DAWN dividend | |
| 3. | TLT dividend | 8. | GLD dividend | 3. | EOSE dividend | |
| 4. | IBIT dividend | 9. | NFLX dividend | 4. | PGR dividend | |
| 5. | SLV dividend | 10. | ASST dividend | 5. | IONQ dividend | |
Want more examples? ACAD Dividend | ACCO Dividend
