AXTA Dividend Type Payments

Although AXTA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on AXALTA COATING SYSTEMS LTD to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

AXALTA COATING SYSTEMS LTD (AXTA)
Bid Ask Last Change Volume P/E Market Cap
24.13 26.86 25.00 -0.20 2.3M 44 6.1B

AXTA Dividend-Like Income Using Covered Calls

With AXTA at 25.00, 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% 0.75 0.2
5% 1.25 0.3
10% 2.50 0.7

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 AXTA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 28.00 0.10 25 0.4 1.14 (4.6%)
Dec 21 29.00 0.20 60 0.3 2.14 (8.6%)
5% Yield On AXTA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 28.00 0.10 25 0.4 1.14 (4.6%)
Dec 21 27.00 0.40 60 0.7 0.14 (0.6%)
10% Yield On AXTA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 27.00 0.20 25 0.8 0.14 (0.6%)
Jan 18 27.00 0.70 88 0.8 0.14 (0.6%)

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

 
Top 10 Open Interest For Nov 16 Expiration     Top 5 High Yield
1.SPY dividend 6.QQQ dividend   1.SNAP dividend
2.EWZ dividend 7.IWM dividend   2.AMD dividend
3.EEM dividend 8.FXI dividend   3.TWTR dividend
4.PBR dividend 9.VXX dividend   4.TSLA dividend
5.SPX dividend 10.BAC dividend   5.UVXY dividend

Want more examples? AXSM Dividend | AXTI Dividend