AXP Dividend

American Express Co dividend

Although AXP has a dividend of 0.39 with an ex-dividend date of Jan 3, you can sell covered calls on American Express Co 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):

American Express Co (AXP)
Bid Ask Last Change Volume P/E Market Cap
104.32 106.63 106.70 -0.78 3.5M - 0.0B

AXP Dividend-Like Income Using Covered Calls

With AXP at 106.70, 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% 3.20 0.9
5% 5.34 1.5
10% 10.67 2.9

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 AXP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 112.00 0.11 9 1.2 5.37 (5.0%)
Dec 28 113.00 0.16 16 1.0 6.37 (6.0%)
5% Yield On AXP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 111.00 0.21 9 2.3 4.37 (4.1%)
Dec 28 112.00 0.26 16 1.6 5.37 (5.0%)
10% Yield On AXP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 110.00 0.36 9 4.0 3.37 (3.2%)
Dec 28 110.00 0.61 16 3.8 3.37 (3.2%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.SPY dividend 6.EWZ dividend   1. dividend
2.EEM dividend 7.FXI dividend   2. dividend
3.SPX dividend 8.GE dividend   3. dividend
4.QQQ dividend 9.VXX dividend   4. dividend
5.IWM dividend 10.BAC dividend   5. dividend

Want more examples? AXON Dividend | AXS Dividend