AER Dividend Type Payments

AERCAP HOLDINGS NV dividend

Although AER has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on AERCAP HOLDINGS NV to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 12:55 PM ET):

AERCAP HOLDINGS NV (AER)
Bid Ask Last Change Volume P/E Market Cap
52.99 53.00 52.98 +0.29 223K 7.6 7.8B

AER Dividend-Like Income Using Covered Calls

With AER at 52.98, 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% 1.59 0.4
5% 2.65 0.7
10% 5.30 1.5

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 AER Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 55.00 0.60 33 1.8 2.00 (3.8%)
Jan 18 57.50 0.45 96 0.5 4.50 (8.5%)
5% Yield On AER Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 55.00 0.60 33 1.8 2.00 (3.8%)
Jan 18 55.00 1.15 96 1.2 2.00 (3.8%)
10% Yield On AER Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 55.00 0.60 33 1.8 2.00 (3.8%)

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