Always important when discussing dividends is the fact that, in general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of American Railcar Industries Inc, looking at the dividend history chart for ARII below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 2.5% annualized dividend yield.
Below is a chart showing the trailing twelve month trading history for American Railcar Industries Inc, and highlighting in green where the $50 strike is located relative to that history:
The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the September put at the $50 strike for the 7.4% annualized rate of return represents good reward for the risks. We calculate the trailing twelve month volatility for American Railcar Industries Inc (considering the last 252 trading day closing values as well as today's price of $64.05) to be 42%. For other put options contract ideas at the various different available expirations, visit the ARII Stock Options page of StockOptionsChannel.com.