T Dividend Type Payments

AT&T Inc. dividend

Although T has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on AT&T Inc. 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):

AT&T Inc. (T)
Bid Ask Last Change Volume P/E Market Cap
26.94 26.95 26.96 -0.06 26.8M 18 194B

T Dividend-Like Income Using Covered Calls

With T at 26.96, 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% 0.81 0.2
5% 1.35 0.4
10% 2.70 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 T Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 27.00 0.81 40 2.0 0.05 (0.2%)
Apr 4 27.00 0.37 12 3.1 0.05 (0.2%)
5% Yield On T Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 27.00 0.81 40 2.0 0.05 (0.2%)
Apr 4 27.00 0.37 12 3.1 0.05 (0.2%)
10% Yield On T Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 27.00 0.81 40 2.0 0.05 (0.2%)
Apr 4 27.00 0.37 12 3.1 0.05 (0.2%)

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