AFL Dividend Type Payments

AFLAC Incorporated dividend

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

AFLAC Incorporated (AFL)
Bid Ask Last Change Volume P/E Market Cap
106.36 111.65 109.40 -1.78 2.6M 15 59B

AFL Dividend-Like Income Using Covered Calls

With AFL at 109.40, 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% 3.28 0.9
5% 5.47 1.5
10% 10.94 3.0

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 AFL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 5 112.00 0.60 17 3.5 0.35 (0.3%)
Dec 12 112.00 0.85 24 3.5 0.35 (0.3%)
5% Yield On AFL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 5 112.00 0.60 17 3.5 0.35 (0.3%)
Dec 12 112.00 0.85 24 3.5 0.35 (0.3%)
10% Yield On AFL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 5 112.00 0.60 17 3.5 0.35 (0.3%)
Dec 12 112.00 0.85 24 3.5 0.35 (0.3%)

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Want more examples? AFK Dividend | AFLG Dividend