UPST Dividend Type Payments
Although UPST has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Upstart Holdings, Inc. - Common stock to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| Upstart Holdings, Inc. - Common stock (UPST) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 47.95 |
48.30 |
48.12 |
+0.21 |
2.5M |
208 |
4.7B |
UPST Dividend-Like Income Using Covered Calls
With UPST at 48.12, 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% |
1.44 |
0.4 |
| 5% |
2.41 |
0.7 |
| 10% |
4.81 |
1.3 |
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 UPST Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 6 |
49.00 |
2.34 |
22 |
10.6 |
0.70 (1.5%) |
| Feb 13 |
49.00 |
4.50 |
29 |
15.5 |
0.70 (1.5%) |
| 5% Yield On UPST Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 6 |
49.00 |
2.34 |
22 |
10.6 |
0.70 (1.5%) |
| Feb 13 |
49.00 |
4.50 |
29 |
15.5 |
0.70 (1.5%) |
| 10% Yield On UPST Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Feb 6 |
49.00 |
2.34 |
22 |
10.6 |
0.70 (1.5%) |
| Feb 13 |
49.00 |
4.50 |
29 |
15.5 |
0.70 (1.5%) |
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