AAL Dividend Type Payments

Although AAL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on American Airlines 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 4:16 PM ET):

American Airlines Group, Inc. (AAL)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
14.25	14.29	14.26	+0.25	32.9M	40	9.2B

AAL Dividend-Like Income Using Covered Calls

With AAL at 14.26, 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%	0.43	0.1
5%	0.71	0.2
10%	1.43	0.4

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 AAL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 6	14.50	0.50	23	2.2	0.21 (1.5%)
Dec 13	14.50	0.58	30	1.9	0.21 (1.5%)

5% Yield On AAL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 6	14.50	0.50	23	2.2	0.21 (1.5%)
Dec 13	14.50	0.58	30	1.9	0.21 (1.5%)

10% Yield On AAL Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 6	14.50	0.50	23	2.2	0.21 (1.5%)
Dec 13	14.50	0.58	30	1.9	0.21 (1.5%)

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Want more examples? AAA Dividend | AAOI Dividend