ALKS Dividend Type Payments
Although ALKS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Alkermes plc - 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):
Alkermes plc - Ordinary Shares (ALKS) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
33.23 | 34.78 | 34.37 | +0.34 | 765K | 16 | 5.5B |
ALKS Dividend-Like Income Using Covered Calls
With ALKS at 34.37, 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% | 1.03 | 0.3 |
5% | 1.72 | 0.5 |
10% | 3.44 | 0.9 |
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 ALKS Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 15 | 35.00 | 2.45 | 152 | 1.6 | 0.22 (0.6%) | |
May 16 | 35.00 | 1.55 | 61 | 2.5 | 0.22 (0.6%) |
5% Yield On ALKS Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 15 | 35.00 | 2.45 | 152 | 1.6 | 0.22 (0.6%) | |
May 16 | 35.00 | 1.55 | 61 | 2.5 | 0.22 (0.6%) |
10% Yield On ALKS Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 15 | 35.00 | 2.45 | 152 | 1.6 | 0.22 (0.6%) | |
May 16 | 35.00 | 1.55 | 61 | 2.5 | 0.22 (0.6%) |
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Top 10 Open Interest For Mar 21 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | EEM dividend | 1. | ZIM dividend | |
2. | SPY dividend | 7. | TSLA dividend | 2. | ASO dividend | |
3. | IWM dividend | 8. | KWEB dividend | 3. | RGTI dividend | |
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5. | QQQ dividend | 10. | TLT dividend | 5. | WSM dividend |
Want more examples? ALK Dividend | ALL Dividend