AAWW Dividend Type Payments

ATLAS AIR WORLDWIDE dividend

Although AAWW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ATLAS AIR WORLDWIDE 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):

ATLAS AIR WORLDWIDE (AAWW)
Bid Ask Last Change Volume P/E Market Cap
51.32 54.03 51.32 -1.15 236K 7.6 1.3B

AAWW Dividend-Like Income Using Covered Calls

With AAWW at 51.32, here's a table showing how big the annual "dividend" (ie. 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% 1.54 0.4
5% 2.57 0.7
10% 5.13 1.4

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 AAWW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 62.50 0.15 25 0.6 8.47 (16.5%)
Dec 21 60.00 0.75 60 1.3 5.97 (11.6%)
5% Yield On AAWW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 60.00 0.30 25 1.2 5.97 (11.6%)
Dec 21 60.00 0.75 60 1.3 5.97 (11.6%)
10% Yield On AAWW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 57.50 0.65 25 2.6 3.47 (6.8%)
Dec 21 57.50 1.15 60 1.9 3.47 (6.8%)

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