AL Dividend
Although AL has a dividend of 0.10 with an ex-dividend date of Sep 13, 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 Fri 4:16 PM ET):
| AIR LEASE (AL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 39.30 | 47.17 | 45.46 | +0.03 | 476K | 5.9 | 4.7B |
AL Dividend-Like Income Using Covered Calls
With AL at 45.46, 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% | 1.36 | 0.4 |
| 5% | 2.27 | 0.6 |
| 10% | 4.55 | 1.2 |
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 | 50.00 | 0.45 | 92 | 0.5 | 2.83 (6.2%) | |
| Feb 15 | 50.00 | 1.05 | 183 | 0.6 | 2.83 (6.2%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Sep 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | EEM dividend | 6. | GE dividend | 1. | COTY dividend | |
| 2. | SPY dividend | 7. | GLD dividend | 2. | LB dividend | |
| 3. | SPX dividend | 8. | FB dividend | 3. | AKRX dividend | |
| 4. | QQQ dividend | 9. | IWM dividend | 4. | UVXY dividend | |
| 5. | XLF dividend | 10. | GDX dividend | 5. | GPS dividend | |
Want more examples? AKS Dividend | ALB Dividend
