UMC Dividend Type Payments


Although UMC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on UNITED MICROELECTRONICS to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 3:50 PM ET):

Bid Ask Last Change Volume P/E Market Cap
2.15 2.16 2.15 0.00 900K 13 5.1B

UMC Dividend-Like Income Using Covered Calls

With UMC at 2.15, 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% 0.06 0.0
5% 0.11 0.0
10% 0.22 0.1

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:

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

Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.PBR dividend   1.LLNW dividend
2.SPX dividend 7.MU dividend   2.ERIC dividend
3.QQQ dividend 8.FXI dividend   3.GBT dividend
4.EEM dividend 9.IWM dividend   4.CLVS dividend
5.BAC dividend 10.AMD dividend   5.CRON dividend

Want more examples? UMBF Dividend | UMDD Dividend