UTX Dividend

UNITED TECHNOLOGIES dividend

Although UTX has a dividend of 0.70 with an ex-dividend date of Aug 16, you can sell covered calls on UNITED TECHNOLOGIES to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

UNITED TECHNOLOGIES (UTX)
Bid Ask Last Change Volume P/E Market Cap
126.95 129.88 128.98 -0.53 3.7M 23 104B

UTX Dividend-Like Income Using Covered Calls

With UTX at 128.98, 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% 3.87 1.1
5% 6.45 1.8
10% 12.90 3.5

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 UTX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 20 132.00 0.08 5 1.6 2.12 (1.6%)
Jul 27 136.00 0.15 12 1.3 6.12 (4.7%)
5% Yield On UTX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 20 131.00 0.22 5 4.4 1.12 (0.9%)
Jul 27 135.00 0.27 12 2.3 5.12 (4.0%)
10% Yield On UTX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 20 131.00 0.22 5 4.4 1.12 (0.9%)
Jul 27 133.00 0.60 12 5.0 3.12 (2.4%)

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