ABNB Dividend Type Payments
Although ABNB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Airbnb, Inc. - Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 2:45 PM ET):
Airbnb, Inc. - Class A (ABNB) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
159.30 |
159.35 |
159.32 |
+0.99 |
3.3M |
22 |
103B |
ABNB Dividend-Like Income Using Covered Calls
With ABNB at 159.32, 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% |
4.78 |
1.3 |
5% |
7.97 |
2.2 |
10% |
15.93 |
4.4 |
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 ABNB Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Jun 7 |
160.00 |
8.65 |
36 |
24.0 |
0.65 (0.4%) |
May 10 |
160.00 |
6.20 |
8 |
77.5 |
0.65 (0.4%) |
5% Yield On ABNB Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Jun 7 |
160.00 |
8.65 |
36 |
24.0 |
0.65 (0.4%) |
May 10 |
160.00 |
6.20 |
8 |
77.5 |
0.65 (0.4%) |
10% Yield On ABNB Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Jun 7 |
160.00 |
8.65 |
36 |
24.0 |
0.65 (0.4%) |
May 10 |
160.00 |
6.20 |
8 |
77.5 |
0.65 (0.4%) |
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