PAAS Dividend Type Payments

PAN AMERICAN SILVER dividend

Although PAAS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PAN AMERICAN SILVER to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

PAN AMERICAN SILVER (PAAS)
Bid Ask Last Change Volume P/E Market Cap
15.77 16.10 15.90 +0.08 953K 16 2.4B

PAAS Dividend-Like Income Using Covered Calls

With PAAS at 15.90, here's a table showing how big the annual "dividend" (ie. 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% 0.48 0.1
5% 0.80 0.2
10% 1.59 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 PAAS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 17.00 0.15 33 0.5 0.90 (5.7%)
Oct 19 18.00 0.10 61 0.2 1.90 (11.9%)
5% Yield On PAAS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 17.00 0.15 33 0.5 0.90 (5.7%)
Oct 19 17.00 0.30 61 0.5 0.90 (5.7%)
10% Yield On PAAS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 17.00 0.15 33 0.5 0.90 (5.7%)
Oct 19 17.00 0.30 61 0.5 0.90 (5.7%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.EEM dividend 6.GE dividend   1.COTY dividend
2.SPY dividend 7.GLD dividend   2.MOMO dividend
3.SPX dividend 8.FB dividend   3.UVXY dividend
4.QQQ dividend 9.IWM dividend   4.AKRX dividend
5.XLF dividend 10.GDX dividend   5.LB dividend

Want more examples? PAA Dividend | PACB Dividend