AI Dividend Type Payments
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 Fri 4:16 PM ET):
| C3.ai, Inc. Class A (AI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 16.90 | 16.91 | 16.91 | -0.40 | 6.6M | - | 2.3B |
AI Dividend-Like Income Using Covered Calls
With AI at 16.91, 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% | 0.51 | 0.1 |
| 5% | 0.85 | 0.2 |
| 10% | 1.69 | 0.5 |
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 AI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 3 | 17.00 | 1.26 | 36 | 3.5 | 0.09 (0.5%) | |
| Sep 5 | 17.00 | 0.79 | 8 | 9.9 | 0.09 (0.5%) | |
| 5% Yield On AI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 3 | 17.00 | 1.26 | 36 | 3.5 | 0.09 (0.5%) | |
| Sep 5 | 17.00 | 0.79 | 8 | 9.9 | 0.09 (0.5%) | |
| 10% Yield On AI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 3 | 17.00 | 1.26 | 36 | 3.5 | 0.09 (0.5%) | |
| Sep 5 | 17.00 | 0.79 | 8 | 9.9 | 0.09 (0.5%) | |
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| Top 10 Open Interest For Sep 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | ATYR dividend | |
| 2. | PCG dividend | 7. | FXI dividend | 2. | AEO dividend | |
| 3. | IWM dividend | 8. | QQQ dividend | 3. | LULU dividend | |
| 4. | SPY dividend | 9. | IBIT dividend | 4. | CIFR dividend | |
| 5. | EEM dividend | 10. | INTC dividend | 5. | AI dividend | |
Want more examples? AHH Dividend | AIA Dividend
