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 Mon 4:16 PM ET):
| Airbnb, Inc. - Class A (ABNB) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 118.00 |
118.67 |
118.80 |
+1.81 |
4.4M |
28 |
73B |
ABNB Dividend-Like Income Using Covered Calls
With ABNB at 118.80, 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% |
3.56 |
1.0 |
| 5% |
5.94 |
1.6 |
| 10% |
11.88 |
3.3 |
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 |
| Dec 5 |
119.00 |
1.58 |
5 |
31.6 |
0.33 (0.3%) |
| Dec 12 |
119.00 |
2.46 |
12 |
20.5 |
0.33 (0.3%) |
| 5% Yield On ABNB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
119.00 |
1.58 |
5 |
31.6 |
0.33 (0.3%) |
| Dec 12 |
119.00 |
2.46 |
12 |
20.5 |
0.33 (0.3%) |
| 10% Yield On ABNB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
119.00 |
1.58 |
5 |
31.6 |
0.33 (0.3%) |
| Dec 12 |
119.00 |
2.46 |
12 |
20.5 |
0.33 (0.3%) |
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