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 Wed 9:55 AM ET):

Carnival Plc ADS ADS (CUK)
Bid Ask Last Change Volume P/E Market Cap
55.97 56.01 55.97 +0.51 57K - 0.0B

CUK Dividend-Like Income Using Covered Calls

With CUK at 55.97, 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% 1.68 0.5
5% 2.80 0.8
10% 5.60 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
Feb 15 60.00 0.40 59 0.7 3.99 (7.1%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
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4.QQQ dividend 9.GE dividend   4. dividend
5.IWM dividend 10.HYG dividend   5. dividend

Want more examples? CUI Dividend | CULP Dividend