AMWL Dividend Type Payments
Although AMWL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on American Well Corporation 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 3:05 PM ET):
| American Well Corporation Class A (AMWL) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 4.19 |
4.27 |
4.24 |
+0.15 |
85K |
- |
0.1B |
AMWL Dividend-Like Income Using Covered Calls
With AMWL at 4.24, 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% |
0.13 |
0.0 |
| 5% |
0.21 |
0.1 |
| 10% |
0.42 |
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 AMWL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
5.00 |
0.15 |
43 |
0.3 |
0.73 (17.2%) |
| Mar 20 |
10.00 |
0.05 |
134 |
0.0 |
5.73 (135.1%) |
| 5% Yield On AMWL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
5.00 |
0.15 |
43 |
0.3 |
0.73 (17.2%) |
| Mar 20 |
5.00 |
0.45 |
134 |
0.3 |
0.73 (17.2%) |
| 10% Yield On AMWL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
5.00 |
0.15 |
43 |
0.3 |
0.73 (17.2%) |
| Mar 20 |
5.00 |
0.45 |
134 |
0.3 |
0.73 (17.2%) |
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