UFCS Dividend Type Payments

United Fire Group, Inc dividend

Although UFCS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on United Fire Group, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 2:55 PM ET):

United Fire Group, Inc (UFCS)
Bid Ask Last Change Volume P/E Market Cap
19.88 19.93 19.89 -0.30 29K 14 0.5B

UFCS Dividend-Like Income Using Covered Calls

With UFCS at 19.89, 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% 0.60 0.2
5% 0.99 0.3
10% 1.99 0.5

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 UFCS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 15 20.00 0.40 44 0.9 0.07 (0.4%)
May 16 20.00 0.55 226 0.2 0.07 (0.4%)
5% Yield On UFCS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 15 20.00 0.40 44 0.9 0.07 (0.4%)
Feb 21 20.00 0.55 142 0.4 0.07 (0.4%)
10% Yield On UFCS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 15 20.00 0.40 44 0.9 0.07 (0.4%)

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

 
 
Top 10 Open Interest For Oct 18 Expiration     Top 5 High Yield
1.NVDA dividend 6.EEM dividend   1.APLD dividend
2.IWM dividend 7.SLV dividend   2.CGC dividend
3.SPY dividend 8.SMCI dividend   3.SMR dividend
4.FXI dividend 9.KWEB dividend   4.RIG dividend
5.QQQ dividend 10.HYG dividend   5.BYND dividend

Want more examples? UEIC Dividend | UFI Dividend