ITUB Dividend Type Payments
Although ITUB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Itau Unibanco Banco Holding SA American Depositary Shares (Each repstg 5 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):
| Itau Unibanco Banco Holding SA American Depositary Shares (Each repstg 5 (ITUB) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 5.88 | 5.95 | 5.93 | +0.08 | 39.2M | 8.0 | 113B |
ITUB Dividend-Like Income Using Covered Calls
With ITUB at 5.93, 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% | 0.18 | 0.0 |
| 5% | 0.30 | 0.1 |
| 10% | 0.59 | 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 ITUB Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 19 | 6.00 | 0.30 | 227 | 0.1 | 0.05 (0.8%) | |
| Jun 20 | 6.00 | 0.20 | 136 | 0.1 | 0.05 (0.8%) | |
| 5% Yield On ITUB Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 19 | 6.00 | 0.30 | 227 | 0.1 | 0.05 (0.8%) | |
| Jun 20 | 6.00 | 0.20 | 136 | 0.1 | 0.05 (0.8%) | |
| 10% Yield On ITUB Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 21 | 6.00 | 0.10 | 17 | 0.6 | 0.05 (0.8%) | |
| Mar 21 | 6.00 | 0.10 | 45 | 0.2 | 0.05 (0.8%) | |
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| Top 10 Open Interest For Feb 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | SYM dividend | |
| 2. | TLT dividend | 7. | QQQ dividend | 2. | BILL dividend | |
| 3. | SPY dividend | 8. | SLV dividend | 3. | AFRM dividend | |
| 4. | IWM dividend | 9. | GLD dividend | 4. | NET dividend | |
| 5. | FXI dividend | 10. | KWEB dividend | 5. | PINS dividend | |
Want more examples? ITT Dividend | ITW Dividend
