URI Dividend
Although URI has a dividend of 1.97 with an ex-dividend date of Feb 11, you can sell covered calls on United Rentals, 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):
| United Rentals, Inc. (URI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 885.00 | 904.50 | 899.55 | +51.78 | 963K | 22 | 53B |
URI Dividend-Like Income Using Covered Calls
With URI at 899.55, 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% | 26.99 | 7.4 |
| 5% | 44.98 | 12.3 |
| 10% | 89.96 | 24.6 |
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 URI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 13 | 900.00 | 16.70 | 8 | 152.5 | 0.00 (0.0%) | |
| Feb 20 | 900.00 | 21.20 | 15 | 111.3 | 0.00 (0.0%) | |
| 5% Yield On URI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 13 | 900.00 | 16.70 | 8 | 152.5 | 0.00 (0.0%) | |
| Feb 20 | 900.00 | 21.20 | 15 | 111.3 | 0.00 (0.0%) | |
| 10% Yield On URI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 13 | 900.00 | 16.70 | 8 | 152.5 | 0.00 (0.0%) | |
| Feb 20 | 900.00 | 21.20 | 15 | 111.3 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | QQQ dividend | 1. | OCUL dividend | |
| 2. | KWEB dividend | 7. | SPY dividend | 2. | APLD dividend | |
| 3. | NVDA dividend | 8. | EWZ dividend | 3. | AXTI dividend | |
| 4. | IBIT dividend | 9. | TLT dividend | 4. | U dividend | |
| 5. | GLD dividend | 10. | INTC dividend | 5. | QS dividend | |
Want more examples? URGN Dividend | URNM Dividend
