AL Dividend
Although AL has a dividend of 0.22 with an ex-dividend date of Dec 4, 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 Fri 4:16 PM ET):
| Air Lease Corporation Class A (AL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 63.75 | 64.00 | 63.90 | 0.00 | 1.6M | 7.4 | 7.1B |
AL Dividend-Like Income Using Covered Calls
With AL at 63.90, 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% | 1.92 | 0.5 |
| 5% | 3.20 | 0.9 |
| 10% | 6.39 | 1.8 |
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:
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | SPY dividend | 1. | IMNM dividend | |
| 2. | NVDA dividend | 7. | TLT dividend | 2. | RZLT dividend | |
| 3. | KVUE dividend | 8. | GLD dividend | 3. | AGIO dividend | |
| 4. | SLV dividend | 9. | QQQ dividend | 4. | VTYX dividend | |
| 5. | TSLA dividend | 10. | ASST dividend | 5. | TMC dividend | |
Want more examples? AKRO Dividend | ALB Dividend
