CAR Dividend Type Payments

AVIS BUDGET GROUP dividend

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

AVIS BUDGET GROUP (CAR)
Bid Ask Last Change Volume P/E Market Cap
34.35 35.29 34.95 +0.46 1.1M 7.2 2.7B

CAR Dividend-Like Income Using Covered Calls

With CAR at 34.95, 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% 1.05 0.3
5% 1.75 0.5
10% 3.50 1.0

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
Sep 21 41.00 0.15 36 0.4 5.71 (16.3%)
Nov 16 45.00 0.35 92 0.4 9.71 (27.8%)
5% Yield On CAR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 40.00 0.25 36 0.7 4.71 (13.5%)
Nov 16 44.00 0.50 92 0.5 8.71 (24.9%)
10% Yield On CAR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 39.00 0.40 36 1.1 3.71 (10.6%)
Nov 16 41.00 1.00 92 1.1 5.71 (16.3%)

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Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
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Want more examples? CAPL Dividend | CARA Dividend