AXL Dividend Type Payments

AMERICAN AXLE & MFG HOLDINGS dividend

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

AMERICAN AXLE & MFG HOLDINGS (AXL)
Bid Ask Last Change Volume P/E Market Cap
15.09 15.91 15.50 -0.09 1.0M 4.1 1.7B

AXL Dividend-Like Income Using Covered Calls

With AXL at 15.50, 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% 0.47 0.1
5% 0.78 0.2
10% 1.55 0.4

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 AXL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 18.00 0.15 26 0.6 2.09 (13.5%)
Dec 21 19.00 0.15 61 0.2 3.09 (19.9%)
5% Yield On AXL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 18.00 0.15 26 0.6 2.09 (13.5%)
Dec 21 19.00 0.15 61 0.2 3.09 (19.9%)
10% Yield On AXL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 18.00 0.15 26 0.6 2.09 (13.5%)
Dec 21 18.00 0.30 61 0.5 2.09 (13.5%)

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