AL Dividend Type Payments

AIR LEASE dividend

Although AL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on AIR LEASE to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

AIR LEASE (AL)
Bid Ask Last Change Volume P/E Market Cap
41.25 44.15 41.61 -0.90 414K 5.5 4.4B

AL Dividend-Like Income Using Covered Calls

With AL at 41.61, 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% 1.25 0.3
5% 2.08 0.6
10% 4.16 1.1

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 AL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 45.00 0.25 30 0.8 0.85 (2.0%)
Feb 15 45.00 1.05 121 0.9 0.85 (2.0%)
5% Yield On AL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 45.00 0.25 30 0.8 0.85 (2.0%)
Feb 15 45.00 1.05 121 0.9 0.85 (2.0%)

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Top 10 Open Interest For Nov 16 Expiration     Top 5 High Yield
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2.EWZ dividend 7.FXI dividend   2.CLF dividend
3.EEM dividend 8.VXX dividend   3.PYPL dividend
4.PBR dividend 9.IWM dividend   4.SKX dividend
5.QQQ dividend 10.BAC dividend   5.UVXY dividend

Want more examples? AKS Dividend | ALB Dividend