ALGT Dividend Type Payments

Allegiant Travel Company dividend

Although ALGT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Allegiant Travel Company to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:00 PM ET):

Allegiant Travel Company (ALGT)
Bid Ask Last Change Volume P/E Market Cap
55.41 55.44 55.42 +4.57 342K - 0.9B

ALGT Dividend-Like Income Using Covered Calls

With ALGT at 55.42, 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% 1.66 0.5
5% 2.77 0.8
10% 5.54 1.5

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 ALGT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 60.00 2.90 45 6.4 4.56 (8.2%)
Apr 17 60.00 0.90 16 5.6 4.56 (8.2%)
5% Yield On ALGT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 60.00 2.90 45 6.4 4.56 (8.2%)
Apr 17 60.00 0.90 16 5.6 4.56 (8.2%)
10% Yield On ALGT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 60.00 2.90 45 6.4 4.56 (8.2%)
Apr 17 60.00 0.90 16 5.6 4.56 (8.2%)

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