Alexandria Real Estate Equities REIT, (NYSE:ARE), is the largest landlord for biotech firms in the U.S., which makes it a play on Healthcare.
Although its common stock dividend is not very high, (currently a 2.26% dividend yield), there are 4 ways to achieve a high single and double-digit yields from this stock:
1.With its juicy options, ARE is listed in our Covered Call tables, with a 14%-plus current yield on its July $65 calls, which are currently bid at $4.20. (ARE closed at $61.88 Friday).
The potential assigned yield for selling these covered calls 10.58% annualized, giving you a total potential yield of 27.19%.
2. Our Covered Put tables list $60 July covered puts at a $5.00 bid, for a 17.50 % annualized yield. (This yield is based on a 100% cash reserve.)
3. Alexandria has a preferred stock, AREEP, a cumulative convertible series D stock, that pays $1.75/share per year, in quarterly payments. AREEP is now at $21.75, and has a 7.97% yield. It's callable in 2013 at $25.
4. Alexandria has another preferred stock, AREPC, a cumulative convertible series C stock, that pays $2.09/share per year, in quarterly payments. Note: This preferred stock is now callable at ANY TIME at $25/share, and it closed at $25 on Friday. This dividend yield is 8.36%.
Note: Many of the free finance sites have very sketchy info on preferred stocks. The online brokerage sites may provide better and more details.
Disclosure: Author long ARE preferred shares
Disclaimer: This article was written for informational purposes only.
Disclosure: Author is long ARE preferred shares