CAR Dividend Type Payments

Avis Budget Group, Inc. dividend

Although CAR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Avis Budget Group, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 10:25 AM ET):

Avis Budget Group, Inc. (CAR)
Bid Ask Last Change Volume P/E Market Cap
94.59 94.87 94.84 +1.87 73K - 3.3B

CAR Dividend-Like Income Using Covered Calls

With CAR at 94.84, here's a table showing how big the annual "dividend" (i.e. 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% 2.85 0.8
5% 4.74 1.3
10% 9.48 2.6

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 CAR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 6 100.00 4.60 36 12.8 5.13 (5.4%)
May 9 100.00 2.70 8 33.8 5.13 (5.4%)
5% Yield On CAR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 6 100.00 4.60 36 12.8 5.13 (5.4%)
May 9 100.00 2.70 8 33.8 5.13 (5.4%)
10% Yield On CAR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 6 100.00 4.60 36 12.8 5.13 (5.4%)
May 9 100.00 2.70 8 33.8 5.13 (5.4%)

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

 
 
Top 10 Open Interest For May 16 Expiration     Top 5 High Yield
1.NVDA dividend 6.IWM dividend   1.WOLF dividend
2.SPY dividend 7.FXI dividend   2.HTZ dividend
3.TLT dividend 8.GLD dividend   3.APP dividend
4.SLV dividend 9.TSLA dividend   4.STLA dividend
5.QQQ dividend 10.INTC dividend   5.CVI dividend

Want more examples? CAPR Dividend | CARE Dividend