AFL Dividend

Although AFL has a dividend of 0.61 with an ex-dividend date of Feb 18, you can sell covered calls on AFLAC Incorporated 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):

AFLAC Incorporated (AFL)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
109.30	111.75	110.80	+0.84	1.1M	14	58B

AFL Dividend-Like Income Using Covered Calls

With AFL at 110.80, 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%	3.32	0.9
5%	5.54	1.5
10%	11.08	3.0

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 AFL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Feb 6	112.00	0.95	39	2.4	0.25 (0.2%)
Jan 9	112.00	0.25	11	2.3	0.25 (0.2%)

5% Yield On AFL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Feb 6	112.00	0.95	39	2.4	0.25 (0.2%)
Jan 9	112.00	0.25	11	2.3	0.25 (0.2%)

10% Yield On AFL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 16	112.00	0.55	18	3.1	0.25 (0.2%)

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Top 10 Open Interest For Jan 16 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	AAPL dividend	1.	PGR dividend
2.	INTC dividend	7.	GLD dividend	2.	IMRX dividend
3.	IBIT dividend	8.	SPY dividend	3.	DAWN dividend
4.	TLT dividend	9.	NIO dividend	4.	ASTS dividend
5.	SLV dividend	10.	NFLX dividend	5.	LUNR dividend

Want more examples? AFK Dividend | AFLG Dividend