ALK Dividend Type Payments

Alaska Air Group, Inc. dividend

Although ALK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Alaska Air Group, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

Alaska Air Group, Inc. (ALK)
Bid Ask Last Change Volume P/E Market Cap
48.44 49.22 48.84 -0.58 2.3M 20 5.7B

ALK Dividend-Like Income Using Covered Calls

With ALK at 48.84, 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% 1.47 0.4
5% 2.44 0.7
10% 4.88 1.3

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 ALK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 50.00 0.45 3 15.0 0.78 (1.6%)
Nov 21 50.00 2.90 38 7.6 0.78 (1.6%)
5% Yield On ALK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 50.00 0.45 3 15.0 0.78 (1.6%)
Nov 21 50.00 2.90 38 7.6 0.78 (1.6%)
10% Yield On ALK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 50.00 0.45 3 15.0 0.78 (1.6%)
Nov 21 50.00 2.90 38 7.6 0.78 (1.6%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For Oct 17 Expiration     Top 5 High Yield
1.NVDA dividend 6.INTC dividend   1.BHVN dividend
2.IBIT dividend 7.SLV dividend   2.NB dividend
3.SPY dividend 8.AMZN dividend   3.SANA dividend
4.GLD dividend 9.QQQ dividend   4.AREC dividend
5.TSLA dividend 10.OPEN dividend   5.EU dividend

Want more examples? ALGT Dividend | ALKS Dividend