AVDL Dividend Type Payments
Although AVDL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Avadel Pharmaceuticals plc - Ordinary Share 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):
| Avadel Pharmaceuticals plc - Ordinary Share (AVDL) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 8.40 |
8.94 |
8.61 |
-0.14 |
799K |
- |
0.8B |
AVDL Dividend-Like Income Using Covered Calls
With AVDL at 8.61, 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% |
0.26 |
0.1 |
| 5% |
0.43 |
0.1 |
| 10% |
0.86 |
0.2 |
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 AVDL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
10.00 |
0.95 |
144 |
0.7 |
1.06 (12.3%) |
| Dec 19 |
10.00 |
1.30 |
235 |
0.6 |
1.06 (12.3%) |
| 5% Yield On AVDL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
10.00 |
0.95 |
144 |
0.7 |
1.06 (12.3%) |
| Dec 19 |
10.00 |
1.30 |
235 |
0.6 |
1.06 (12.3%) |
| 10% Yield On AVDL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
10.00 |
0.95 |
144 |
0.7 |
1.06 (12.3%) |
| Dec 19 |
10.00 |
1.30 |
235 |
0.6 |
1.06 (12.3%) |
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