UHS Dividend Type Payments
Although UHS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Universal Health Services, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| Universal Health Services, Inc. (UHS) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 210.00 | 223.53 | 222.60 | -1.98 | 734K | 11 | 14B |
UHS Dividend-Like Income Using Covered Calls
With UHS at 222.60, 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% | 6.68 | 1.8 |
| 5% | 11.13 | 3.0 |
| 10% | 22.26 | 6.1 |
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 UHS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 230.00 | 0.20 | 8 | 2.5 | 6.47 (2.9%) | |
| Jan 16 | 230.00 | 3.60 | 36 | 10.0 | 6.47 (2.9%) | |
| 5% Yield On UHS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 16 | 230.00 | 3.60 | 36 | 10.0 | 6.47 (2.9%) | |
| Apr 17 | 230.00 | 12.30 | 127 | 9.7 | 6.47 (2.9%) | |
| 10% Yield On UHS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 16 | 230.00 | 3.60 | 36 | 10.0 | 6.47 (2.9%) | |
| Apr 17 | 230.00 | 12.30 | 127 | 9.7 | 6.47 (2.9%) | |
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| Top 10 Open Interest For Dec 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | NKTR dividend | |
| 2. | SPY dividend | 7. | TLT dividend | 2. | AVXL dividend | |
| 3. | IBIT dividend | 8. | SLV dividend | 3. | CTMX dividend | |
| 4. | IWM dividend | 9. | NFLX dividend | 4. | BE dividend | |
| 5. | QQQ dividend | 10. | TSLA dividend | 5. | OMER dividend | |
Want more examples? UHAL Dividend | UHT Dividend
