UVV Dividend Type Payments
Although UVV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Universal Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 10:25 AM ET):
Universal Corporation (UVV) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
55.24 | 55.50 | 55.37 | -0.52 | 34K | 15 | 1.4B |
UVV Dividend-Like Income Using Covered Calls
With UVV at 55.37, 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% | 1.66 | 0.5 |
5% | 2.77 | 0.8 |
10% | 5.54 | 1.5 |
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 UVV Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 15 | 60.00 | 0.25 | 30 | 0.8 | 4.50 (8.1%) | |
Feb 20 | 60.00 | 2.00 | 219 | 0.9 | 4.50 (8.1%) |
5% Yield On UVV Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 15 | 60.00 | 0.25 | 30 | 0.8 | 4.50 (8.1%) | |
Feb 20 | 60.00 | 2.00 | 219 | 0.9 | 4.50 (8.1%) |
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Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
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1. | NVDA dividend | 6. | IWM dividend | 1. | CELC dividend | |
2. | SLV dividend | 7. | GLD dividend | 2. | CENX dividend | |
3. | SPY dividend | 8. | TLT dividend | 3. | MNMD dividend | |
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5. | AAPL dividend | 10. | AMZN dividend | 5. | PRAX dividend |
Want more examples? UVSP Dividend | UVXY Dividend