AI Dividend Type Payments
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 Mon 2:00 PM ET):
C3.ai, Inc. Class A (AI) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
24.13 | 24.15 | 24.14 | +0.06 | 1.2M | - | 3.1B |
AI Dividend-Like Income Using Covered Calls
With AI at 24.14, 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% | 0.72 | 0.2 |
5% | 1.21 | 0.3 |
10% | 2.41 | 0.7 |
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 1 | 25.00 | 0.90 | 26 | 3.5 | 0.85 (3.5%) | |
Nov 8 | 25.00 | 1.17 | 33 | 3.5 | 0.85 (3.5%) |
5% Yield On AI Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 1 | 25.00 | 0.90 | 26 | 3.5 | 0.85 (3.5%) | |
Nov 8 | 25.00 | 1.17 | 33 | 3.5 | 0.85 (3.5%) |
10% Yield On AI Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 1 | 25.00 | 0.90 | 26 | 3.5 | 0.85 (3.5%) | |
Nov 8 | 25.00 | 1.17 | 33 | 3.5 | 0.85 (3.5%) |
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Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | EEM dividend | 1. | ASTS dividend | |
2. | IWM dividend | 7. | SLV dividend | 2. | AEHR dividend | |
3. | SPY dividend | 8. | SMCI dividend | 3. | CAPR dividend | |
4. | FXI dividend | 9. | KWEB dividend | 4. | TVTX dividend | |
5. | QQQ dividend | 10. | HYG dividend | 5. | GRPN dividend |
Want more examples? AHT Dividend | AIA Dividend