AL Dividend Type Payments
Although AL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Air Lease Corporation Class A 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 Corporation Class A (AL) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
53.65 | 60.00 | 59.75 | +0.82 | 467K | 10 | 6.6B |
AL Dividend-Like Income Using Covered Calls
With AL at 59.75, 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% | 1.79 | 0.5 |
5% | 2.99 | 0.8 |
10% | 5.98 | 1.6 |
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 | |
Aug 15 | 60.00 | 2.45 | 44 | 5.6 | 0.00 (0.0%) | |
Jul 18 | 60.00 | 1.10 | 16 | 6.9 | 0.00 (0.0%) |
5% Yield On AL Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 15 | 60.00 | 2.45 | 44 | 5.6 | 0.00 (0.0%) | |
Jul 18 | 60.00 | 1.10 | 16 | 6.9 | 0.00 (0.0%) |
10% Yield On AL Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 15 | 60.00 | 2.45 | 44 | 5.6 | 0.00 (0.0%) | |
Jul 18 | 60.00 | 1.10 | 16 | 6.9 | 0.00 (0.0%) |
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Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
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Want more examples? AKRO Dividend | ALB Dividend