ASB Dividend Type Payments
Although ASB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Associated Banc-Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 11:55 AM ET):
| Associated Banc-Corp (ASB) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 22.29 |
22.30 |
22.30 |
-0.42 |
206K |
32 |
3.8B |
ASB Dividend-Like Income Using Covered Calls
With ASB at 22.30, 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% |
2.23 |
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 ASB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
22.50 |
0.85 |
50 |
1.7 |
0.20 (0.9%) |
| Apr 17 |
22.50 |
0.55 |
21 |
2.6 |
0.20 (0.9%) |
| 5% Yield On ASB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
22.50 |
0.85 |
50 |
1.7 |
0.20 (0.9%) |
| Apr 17 |
22.50 |
0.55 |
21 |
2.6 |
0.20 (0.9%) |
| 10% Yield On ASB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
22.50 |
0.85 |
50 |
1.7 |
0.20 (0.9%) |
| Apr 17 |
22.50 |
0.55 |
21 |
2.6 |
0.20 (0.9%) |
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