AXL Dividend Type Payments

Although AXL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on American Axle & Manufacturing Holdings, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 3:05 PM ET):

American Axle & Manufacturing Holdings, Inc. (AXL)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
6.21	6.22	6.21	-0.10	696K	-	0.7B

AXL Dividend-Like Income Using Covered Calls

With AXL at 6.21, 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%	0.19	0.1
5%	0.31	0.1
10%	0.62	0.2

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 AXL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	7.00	0.05	33	0.2	0.78 (12.6%)
Jan 17	7.00	0.15	61	0.2	0.78 (12.6%)

5% Yield On AXL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	7.00	0.05	33	0.2	0.78 (12.6%)
Jan 17	7.00	0.15	61	0.2	0.78 (12.6%)

10% Yield On AXL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 17	7.00	0.15	61	0.2	0.78 (12.6%)
Apr 17	7.00	0.40	151	0.3	0.78 (12.6%)

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Want more examples? AXGN Dividend | AXNX Dividend