UTX Dividend Type Payments

UNITED TECHNOLOGIES dividend

Although UTX has no upcoming (meaning, Board-approved and announced) dividends, 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 Thu 4:16 PM ET):

UNITED TECHNOLOGIES (UTX)
Bid Ask Last Change Volume P/E Market Cap
126.37 132.00 129.73 +1.58 4.5M 21 103B

UTX Dividend-Like Income Using Covered Calls

With UTX at 129.73, 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% 3.89 1.1
5% 6.49 1.8
10% 12.97 3.6

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
Nov 23 136.00 0.15 9 1.7 4.00 (3.1%)
Nov 30 139.00 0.18 16 1.1 7.00 (5.4%)
5% Yield On UTX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 23 135.00 0.19 9 2.1 3.00 (2.3%)
Nov 30 137.00 0.38 16 2.4 5.00 (3.9%)
10% Yield On UTX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 23 134.00 0.32 9 3.6 2.00 (1.5%)
Nov 30 135.00 0.60 16 3.8 3.00 (2.3%)

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Want more examples? UTSL Dividend | UTY Dividend