UNH Dividend Type Payments
Although UNH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Unitedhealth Group, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 11:05 AM ET):
| Unitedhealth Group, Inc (UNH) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 260.26 | 260.43 | 260.35 | -6.30 | 2.3M | 21 | 253B |
UNH Dividend-Like Income Using Covered Calls
With UNH at 260.35, 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% | 7.81 | 2.1 |
| 5% | 13.02 | 3.6 |
| 10% | 26.04 | 7.1 |
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:
| 3% Yield On UNH Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jul 26 | 275.00 | 0.26 | 9 | 2.9 | 14.57 (5.6%) | |
| Aug 2 | 275.00 | 0.48 | 16 | 3.0 | 14.57 (5.6%) | |
| 5% Yield On UNH Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jul 26 | 272.50 | 0.41 | 9 | 4.6 | 12.07 (4.6%) | |
| Aug 2 | 272.50 | 0.79 | 16 | 4.9 | 12.07 (4.6%) | |
| 10% Yield On UNH Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jul 26 | 270.00 | 0.70 | 9 | 7.8 | 9.57 (3.7%) | |
| Aug 2 | 270.00 | 1.22 | 16 | 7.6 | 9.57 (3.7%) | |
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| Top 10 Open Interest For Jul 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | OIH dividend | 1. | SKX dividend | |
| 2. | SPX dividend | 7. | USO dividend | 2. | BFR dividend | |
| 3. | EEM dividend | 8. | AAPL dividend | 3. | CRWD dividend | |
| 4. | IWM dividend | 9. | FXI dividend | 4. | CLF dividend | |
| 5. | QQQ dividend | 10. | VXX dividend | 5. | OSTK dividend | |
Want more examples? UNG Dividend | UNIT Dividend
