UTZ Dividend Type Payments
Although UTZ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Utz Brands Inc Class A 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):
| Utz Brands Inc Class A (UTZ) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 10.50 |
11.30 |
11.13 |
+0.04 |
1.3M |
158 |
1.6B |
UTZ Dividend-Like Income Using Covered Calls
With UTZ at 11.13, 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% |
0.33 |
0.1 |
| 5% |
0.56 |
0.2 |
| 10% |
1.11 |
0.3 |
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 UTZ Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Mar 20 |
12.50 |
0.10 |
38 |
0.3 |
1.20 (10.8%) |
| Jun 18 |
12.50 |
0.40 |
128 |
0.3 |
1.20 (10.8%) |
| 5% Yield On UTZ Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Mar 20 |
12.50 |
0.10 |
38 |
0.3 |
1.20 (10.8%) |
| Jun 18 |
12.50 |
0.40 |
128 |
0.3 |
1.20 (10.8%) |
| 10% Yield On UTZ Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 18 |
12.50 |
0.40 |
128 |
0.3 |
1.20 (10.8%) |
| Sep 18 |
12.50 |
0.70 |
220 |
0.3 |
1.20 (10.8%) |
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