UAL Dividend Type Payments
Although UAL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on United Airlines Holdings, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| United Airlines Holdings, Inc. (UAL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 109.35 | 109.94 | 109.30 | -4.64 | 7.3M | 11 | 37B |
UAL Dividend-Like Income Using Covered Calls
With UAL at 109.30, 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% | 3.28 | 0.9 |
| 5% | 5.47 | 1.5 |
| 10% | 10.93 | 3.0 |
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 UAL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 20 | 110.00 | 2.62 | 9 | 29.1 | 0.06 (0.1%) | |
| Feb 27 | 110.00 | 4.15 | 16 | 25.9 | 0.06 (0.1%) | |
| 5% Yield On UAL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 20 | 110.00 | 2.62 | 9 | 29.1 | 0.06 (0.1%) | |
| Feb 27 | 110.00 | 4.15 | 16 | 25.9 | 0.06 (0.1%) | |
| 10% Yield On UAL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 20 | 110.00 | 2.62 | 9 | 29.1 | 0.06 (0.1%) | |
| Feb 27 | 110.00 | 4.15 | 16 | 25.9 | 0.06 (0.1%) | |
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| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SPY dividend | 1. | PINS dividend | |
| 2. | GLD dividend | 7. | QQQ dividend | 2. | AAP dividend | |
| 3. | SLV dividend | 8. | TLT dividend | 3. | DKNG dividend | |
| 4. | KWEB dividend | 9. | INTC dividend | 4. | OCUL dividend | |
| 5. | IBIT dividend | 10. | EWZ dividend | 5. | TWLO dividend | |
Want more examples? UAA Dividend | UAMY Dividend
