APD Dividend Type Payments

Although APD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Air Products and Chemicals, Inc. 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):

Air Products and Chemicals, Inc. (APD)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
326.00	329.80	327.89	+10.79	1.9M	28	71B

APD Dividend-Like Income Using Covered Calls

With APD at 327.89, 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%	9.84	2.7
5%	16.39	4.5
10%	32.79	9.0

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 APD Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	330.00	6.40	33	19.4	0.20 (0.1%)
Jan 17	330.00	9.10	61	14.9	0.20 (0.1%)

5% Yield On APD Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	330.00	6.40	33	19.4	0.20 (0.1%)
Jan 17	330.00	9.10	61	14.9	0.20 (0.1%)

10% Yield On APD Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	330.00	6.40	33	19.4	0.20 (0.1%)
Jan 17	330.00	9.10	61	14.9	0.20 (0.1%)

Want to increase dividends with covered calls? Sign Up For A Free Trial

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? APAM Dividend | APDN Dividend