APA Dividend

Although APA has a dividend of 0.25 with an ex-dividend date of Jan 22, 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 Wed 4:16 PM ET):

APA Corporation (APA)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
23.35	23.69	23.68	+0.02	4.2M	3.4	8.8B

APA Dividend-Like Income Using Covered Calls

With APA at 23.68, 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%	0.71	0.2
5%	1.18	0.3
10%	2.37	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
Feb 7	24.00	0.77	31	2.5	0.31 (1.3%)
Jan 10	24.00	0.08	3	2.7	0.31 (1.3%)

5% Yield On APA Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Feb 7	24.00	0.77	31	2.5	0.31 (1.3%)
Jan 10	24.00	0.08	3	2.7	0.31 (1.3%)

10% Yield On APA Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Feb 7	24.00	0.77	31	2.5	0.31 (1.3%)
Jan 10	24.00	0.08	3	2.7	0.31 (1.3%)

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Top 10 Open Interest For Jan 17 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	SPY dividend	1.	RGTI dividend
2.	SLV dividend	7.	XLF dividend	2.	IONQ dividend
3.	AAPL dividend	8.	IWM dividend	3.	U dividend
4.	EEM dividend	9.	TSLA dividend	4.	VIR dividend
5.	INTC dividend	10.	TLT dividend	5.	HCAT dividend

Want more examples? AP Dividend | APAM Dividend