AXL Dividend Type Payments
Although AXL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on American Axle & Manufacturing Holdings, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| American Axle & Manufacturing Holdings, Inc. (AXL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 5.77 | 6.03 | 5.85 | -0.01 | 1.1M | - | 0.7B |
AXL Dividend-Like Income Using Covered Calls
With AXL at 5.85, 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% | 0.18 | 0.0 |
| 5% | 0.29 | 0.1 |
| 10% | 0.59 | 0.2 |
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 AXL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 6.00 | 0.45 | 93 | 0.5 | 0.00 (0.0%) | |
| Jul 18 | 6.00 | 0.55 | 185 | 0.3 | 0.00 (0.0%) | |
| 5% Yield On AXL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 6.00 | 0.45 | 93 | 0.5 | 0.00 (0.0%) | |
| Jul 18 | 6.00 | 0.55 | 185 | 0.3 | 0.00 (0.0%) | |
| 10% Yield On AXL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 6.00 | 0.45 | 93 | 0.5 | 0.00 (0.0%) | |
| Jul 18 | 6.00 | 0.55 | 185 | 0.3 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Jan 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | RCAT dividend | |
| 2. | SLV dividend | 7. | INTC dividend | 2. | XP dividend | |
| 3. | AAPL dividend | 8. | XLF dividend | 3. | RXRX dividend | |
| 4. | SPY dividend | 9. | TLT dividend | 4. | RGTI dividend | |
| 5. | EEM dividend | 10. | IWM dividend | 5. | DNA dividend | |
Want more examples? AXGN Dividend | AXON Dividend
