AROW Dividend Type Payments
Although AROW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Arrow Financial Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| Arrow Financial Corporation (AROW) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 22.41 | 39.82 | 25.12 | +0.38 | 35K | 14 | 0.4B |
AROW Dividend-Like Income Using Covered Calls
With AROW at 25.12, 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% | 0.75 | 0.2 |
| 5% | 1.26 | 0.3 |
| 10% | 2.51 | 0.7 |
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:
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | RDDT dividend | |
| 2. | SPY dividend | 7. | IWM dividend | 2. | WGS dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | SNAP dividend | |
| 4. | SLV dividend | 9. | TSLA dividend | 4. | ZETA dividend | |
| 5. | QQQ dividend | 10. | IBIT dividend | 5. | ENVX dividend | |
Want more examples? AROC Dividend | ARP Dividend
