UVV Dividend Type Payments

UNIVERSAL dividend

Although UVV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on UNIVERSAL 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):

UNIVERSAL (UVV)
Bid Ask Last Change Volume P/E Market Cap
67.15 67.70 67.70 -0.30 93K 15 1.7B

UVV Dividend-Like Income Using Covered Calls

With UVV at 67.70, 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% 2.03 0.6
5% 3.39 0.9
10% 6.77 1.9

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 UVV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 80.00 0.30 30 1.0 12.30 (18.2%)
Feb 15 85.00 0.80 121 0.7 17.30 (25.6%)
5% Yield On UVV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 80.00 0.30 30 1.0 12.30 (18.2%)
Feb 15 75.00 2.55 121 2.1 7.30 (10.8%)
10% Yield On UVV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 75.00 0.70 30 2.3 7.30 (10.8%)
Feb 15 75.00 2.55 121 2.1 7.30 (10.8%)

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Top 10 Open Interest For Nov 16 Expiration     Top 5 High Yield
1.SPY dividend 6.SPX dividend   1.LLNW dividend
2.EWZ dividend 7.FXI dividend   2.CLF dividend
3.EEM dividend 8.VXX dividend   3.PYPL dividend
4.PBR dividend 9.IWM dividend   4.SKX dividend
5.QQQ dividend 10.BAC dividend   5.UVXY dividend

Want more examples? UVSP Dividend | UVXY Dividend