AL Dividend Type Payments
Although AL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Air Lease Corporation Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 1:20 PM ET):
| Air Lease Corporation Class A (AL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 63.61 | 63.62 | 63.62 | +0.12 | 879K | 7.7 | 7.1B |
AL Dividend-Like Income Using Covered Calls
With AL at 63.62, 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% | 1.91 | 0.5 |
| 5% | 3.18 | 0.9 |
| 10% | 6.36 | 1.7 |
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:
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| Top 10 Open Interest For Oct 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | TMQ dividend | |
| 2. | IBIT dividend | 7. | INTC dividend | 2. | ARCT dividend | |
| 3. | GLD dividend | 8. | AMZN dividend | 3. | BHVN dividend | |
| 4. | SPY dividend | 9. | QQQ dividend | 4. | ABAT dividend | |
| 5. | TSLA dividend | 10. | IWM dividend | 5. | LAC dividend | |
Want more examples? AKRO Dividend | ALB Dividend
