ATSG Dividend Type Payments

AIR TRANS SERVICES GROUP dividend

Although ATSG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on AIR TRANS SERVICES GROUP 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 TRANS SERVICES GROUP (ATSG)
Bid Ask Last Change Volume P/E Market Cap
20.30 20.65 20.30 +0.26 247K 12 1.2B

ATSG Dividend-Like Income Using Covered Calls

With ATSG at 20.30, 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% 0.61 0.2
5% 1.02 0.3
10% 2.03 0.6

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 ATSG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 22.50 0.10 36 0.3 1.85 (9.1%)
Dec 21 25.00 0.30 127 0.2 4.35 (21.4%)
5% Yield On ATSG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 22.50 0.75 127 0.6 1.85 (9.1%)
Mar 15 25.00 0.65 211 0.3 4.35 (21.4%)
10% Yield On ATSG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 22.50 0.75 127 0.6 1.85 (9.1%)
Mar 15 22.50 1.25 211 0.6 1.85 (9.1%)

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