UNH Dividend

Although UNH has a dividend of 0.90 with an ex-dividend date of Sep 6, you can sell covered calls on UNITEDHEALTH GROUP 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):

UNITEDHEALTH GROUP (UNH)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
262.00	264.40	263.48	+2.57	1.8M	21	251B

UNH Dividend-Like Income Using Covered Calls

With UNH at 263.48, 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%	7.90	2.2
5%	13.17	3.6
10%	26.35	7.2

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 UNH Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 17	267.50	0.19	4	4.8	3.10 (1.2%)
Aug 24	270.00	0.40	11	3.6	5.60 (2.1%)

5% Yield On UNH Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 17	267.50	0.19	4	4.8	3.10 (1.2%)
Aug 24	270.00	0.40	11	3.6	5.60 (2.1%)

10% Yield On UNH Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 17	265.00	0.74	4	18.5	0.60 (0.2%)
Aug 24	267.50	0.89	11	8.1	3.10 (1.2%)

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Top 10 Open Interest For Aug 17 Expiration				Top 5 High Yield
1.	SPY dividend	6.	BAC dividend	1.	M dividend
2.	EEM dividend	7.	AABA dividend	2.	UVXY dividend
3.	QQQ dividend	8.	FXI dividend	3.	JWN dividend
4.	SPX dividend	9.	FB dividend	4.	CGC dividend
5.	XLF dividend	10.	GLD dividend	5.	A dividend

Want more examples? UNG Dividend | UNIT Dividend