AEM Dividend

Agnico Eagle Mines Limited dividend

Although AEM has a dividend of 0.40 with an ex-dividend date of Feb 28, you can sell covered calls on Agnico Eagle Mines Limited 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):

Agnico Eagle Mines Limited (AEM)
Bid Ask Last Change Volume P/E Market Cap
97.49 97.74 97.49 +1.39 2.0M 25 21B

AEM Dividend-Like Income Using Covered Calls

With AEM at 97.49, 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% 2.92 0.8
5% 4.87 1.3
10% 9.75 2.7

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 AEM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 100.00 8.10 173 4.7 2.26 (2.3%)
May 16 100.00 5.00 82 6.1 2.26 (2.3%)
5% Yield On AEM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 100.00 8.10 173 4.7 2.26 (2.3%)
May 16 100.00 5.00 82 6.1 2.26 (2.3%)
10% Yield On AEM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 100.00 8.10 173 4.7 2.26 (2.3%)
May 16 100.00 5.00 82 6.1 2.26 (2.3%)

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