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 Wed 10:10 AM ET):

AMERICAN AXLE & MFG HOLDINGS (AXL)
Bid Ask Last Change Volume P/E Market Cap
16.26 16.27 16.27 -0.36 285K 4.4 1.9B

AXL Dividend-Like Income Using Covered Calls

With AXL at 16.27, 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% 0.49 0.1
5% 0.81 0.2
10% 1.63 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
Sep 21 18.00 0.15 38 0.4 1.73 (10.6%)
Oct 19 19.00 0.15 66 0.2 2.73 (16.8%)
5% Yield On AXL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 18.00 0.15 38 0.4 1.73 (10.6%)
Oct 19 19.00 0.15 66 0.2 2.73 (16.8%)
10% Yield On AXL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 17.00 0.40 38 1.1 0.73 (4.5%)
Oct 19 18.00 0.30 66 0.5 1.73 (10.6%)

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Want more examples? AXJV Dividend | AXON Dividend