UTL Dividend
Although UTL has a dividend of 0.45 with an ex-dividend date of May 15, you can sell covered calls on UNITIL Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 12:05 PM ET):
| UNITIL Corporation (UTL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 54.87 | 55.36 | 54.91 | -1.84 | 26K | 19 | 0.9B |
UTL Dividend-Like Income Using Covered Calls
With UTL at 54.91, 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% | 1.65 | 0.5 |
| 5% | 2.75 | 0.8 |
| 10% | 5.49 | 1.5 |
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:
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | DOCS dividend | |
| 2. | SPY dividend | 7. | SLV dividend | 2. | ZI dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | LUNR dividend | |
| 4. | IWM dividend | 9. | GLD dividend | 4. | BHVN dividend | |
| 5. | QQQ dividend | 10. | KWEB dividend | 5. | NNE dividend | |
Want more examples? UTI Dividend | UTSL Dividend
