T Dividend Type Payments
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 Tue 4:16 PM ET):
AT&T Inc. (T) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
15.02 | 15.03 | 15.02 | -0.04 | 34.6M | - | 108B |
T Dividend-Like Income Using Covered Calls
With T at 15.02, 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% | 0.45 | 0.1 |
5% | 0.75 | 0.2 |
10% | 1.50 | 0.4 |
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 | |
Sep 29 | 15.00 | 0.16 | 4 | 3.3 | 0.00 (0.0%) | |
Oct 6 | 15.00 | 0.24 | 11 | 1.9 | 0.00 (0.0%) |
5% Yield On T Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Sep 29 | 15.00 | 0.16 | 4 | 3.3 | 0.00 (0.0%) | |
Oct 6 | 15.00 | 0.24 | 11 | 1.9 | 0.00 (0.0%) |
10% Yield On T Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Sep 29 | 15.00 | 0.16 | 4 | 3.3 | 0.00 (0.0%) | |
Oct 6 | 15.00 | 0.24 | 11 | 1.9 | 0.00 (0.0%) |
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Top 10 Open Interest For Oct 20 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | SLV dividend | 6. | FXI dividend | 1. | SNDX dividend | |
2. | SPY dividend | 7. | EEM dividend | 2. | REPL dividend | |
3. | TLT dividend | 8. | AMZN dividend | 3. | DYN dividend | |
4. | QQQ dividend | 9. | HYG dividend | 4. | APLD dividend | |
5. | AAPL dividend | 10. | IWM dividend | 5. | AFRM dividend |
Want more examples? SZNE Dividend | TACT Dividend