APA Dividend Type Payments

APA Corporation dividend

Although APA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on APA Corporation 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):

APA Corporation (APA)
Bid Ask Last Change Volume P/E Market Cap
22.42 22.56 22.46 +0.08 5.4M 3.2 8.3B

APA Dividend-Like Income Using Covered Calls

With APA at 22.46, 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% 0.67 0.2
5% 1.12 0.3
10% 2.25 0.6

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 APA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 6 22.50 0.73 19 3.5 0.00 (0.0%)
Dec 13 22.50 0.89 26 3.2 0.00 (0.0%)
5% Yield On APA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 6 22.50 0.73 19 3.5 0.00 (0.0%)
Dec 13 22.50 0.89 26 3.2 0.00 (0.0%)
10% Yield On APA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 6 22.50 0.73 19 3.5 0.00 (0.0%)
Dec 13 22.50 0.89 26 3.2 0.00 (0.0%)

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Top 10 Open Interest For Dec 20 Expiration     Top 5 High Yield
1.NVDA dividend 6.QQQ dividend   1.SAVA dividend
2.SPY dividend 7.XLF dividend   2.CRVS dividend
3.EEM dividend 8.KWEB dividend   3.ANAB dividend
4.FXI dividend 9.TLT dividend   4.APP dividend
5.IWM dividend 10.KRE dividend   5.RCAT dividend

Want more examples? AP Dividend | APAM Dividend