ALC Dividend Type Payments

Alcon Inc. Ordinary Shares dividend

Although ALC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Alcon Inc. Ordinary 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):

Alcon Inc. Ordinary Shares (ALC)
Bid Ask Last Change Volume P/E Market Cap
87.32 90.60 87.32 -0.16 1.0M 39 43B

ALC Dividend-Like Income Using Covered Calls

With ALC at 87.32, 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% 2.62 0.7
5% 4.37 1.2
10% 8.73 2.4

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 ALC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 92.50 0.60 33 1.8 1.90 (2.2%)
Nov 21 100.00 1.35 131 1.0 9.40 (10.8%)
5% Yield On ALC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 92.50 0.60 33 1.8 1.90 (2.2%)
Nov 21 92.50 3.50 131 2.7 1.90 (2.2%)
10% Yield On ALC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 21 92.50 3.50 131 2.7 1.90 (2.2%)

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