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 Wed 4:16 PM ET):

UNITED TECHNOLOGIES (UTX)
Bid Ask Last Change Volume P/E Market Cap
126.02 127.60 127.58 -0.29 3.8M 23 102B

UTX Dividend-Like Income Using Covered Calls

With UTX at 127.58, 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% 3.83 1.0
5% 6.38 1.7
10% 12.76 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
May 25 130.00 0.05 3 1.7 2.40 (1.9%)
Jun 1 131.00 0.15 10 1.5 3.40 (2.7%)
5% Yield On UTX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 25 129.00 0.17 3 5.7 1.40 (1.1%)
Jun 1 130.00 0.32 10 3.2 2.40 (1.9%)
10% Yield On UTX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 25 129.00 0.17 3 5.7 1.40 (1.1%)
Jun 1 129.00 0.59 10 5.9 1.40 (1.1%)

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Top 10 Open Interest For Jun 15 Expiration     Top 5 High Yield
1.SPY dividend 6.QQQ dividend   1.GPS dividend
2.EEM dividend 7.BAC dividend   2.TXMD dividend
3.SPX dividend 8.HYG dividend   3.GERN dividend
4.GE dividend 9.IWM dividend   4.UVXY dividend
5.XLF dividend 10.T dividend   5.GPRO dividend

Want more examples? UTSI Dividend | UTY Dividend