AI Dividend Type Payments

C3.ai, Inc. Class A dividend

Although AI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on C3.ai, 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 9:55 AM ET):

C3.ai, Inc. Class A (AI)
Bid Ask Last Change Volume P/E Market Cap
19.35 19.38 19.38 +0.39 839K - 2.6B

AI Dividend-Like Income Using Covered Calls

With AI at 19.38, 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% 0.58 0.2
5% 0.97 0.3
10% 1.94 0.5

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 AI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 7 19.50 1.25 24 5.2 0.12 (0.6%)
Nov 14 19.50 1.27 31 4.1 0.12 (0.6%)
5% Yield On AI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 7 19.50 1.25 24 5.2 0.12 (0.6%)
Nov 14 19.50 1.27 31 4.1 0.12 (0.6%)
10% Yield On AI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 7 19.50 1.25 24 5.2 0.12 (0.6%)
Nov 14 19.50 1.27 31 4.1 0.12 (0.6%)

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