CUK Dividend Type Payments

Carnival Plc ADS ADS dividend

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

Carnival Plc ADS ADS (CUK)
Bid Ask Last Change Volume P/E Market Cap
55.25 55.92 55.70 +0.20 247K 13 40B

CUK Dividend-Like Income Using Covered Calls

With CUK at 55.70, 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% 1.67 0.5
5% 2.79 0.8
10% 5.57 1.5

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 CUK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 60.00 0.25 25 1.0 4.08 (7.3%)
May 17 60.00 0.60 54 1.1 4.08 (7.3%)
5% Yield On CUK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 60.00 0.25 25 1.0 4.08 (7.3%)
May 17 60.00 0.60 54 1.1 4.08 (7.3%)

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

 
Top 10 Open Interest For Apr 18 Expiration     Top 5 High Yield
1.SPY dividend 6.USO dividend   1.CRON dividend
2.EEM dividend 7.AAPL dividend   2.NBEV dividend
3.SPX dividend 8.BMY dividend   3.BB dividend
4.QQQ dividend 9.IWM dividend   4.SPWR dividend
5.FXI dividend 10.EWZ dividend   5.BCRX dividend

Want more examples? CUI Dividend | CULP Dividend