AI Dividend Type Payments

C3.ai, Inc. Class A dividend

Although AI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on C3.ai, 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 Wed 4:16 PM ET):

C3.ai, Inc. Class A (AI)
Bid Ask Last Change Volume P/E Market Cap
24.10 24.20 24.16 +0.18 4.5M - 3.2B

AI Dividend-Like Income Using Covered Calls

With AI at 24.16, 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% 0.72 0.2
5% 1.21 0.3
10% 2.42 0.7

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 AI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 3 24.50 0.80 16 5.0 0.30 (1.2%)
Jul 11 24.50 1.06 24 4.4 0.30 (1.2%)
5% Yield On AI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 3 24.50 0.80 16 5.0 0.30 (1.2%)
Jul 11 24.50 1.06 24 4.4 0.30 (1.2%)
10% Yield On AI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 3 24.50 0.80 16 5.0 0.30 (1.2%)
Jul 11 24.50 1.06 24 4.4 0.30 (1.2%)

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