PAG Dividend Type Payments

Penske Automotive Group, Inc. dividend

Although PAG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Penske Automotive 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):

Penske Automotive Group, Inc. (PAG)
Bid Ask Last Change Volume P/E Market Cap
149.72 163.20 153.45 +0.27 176K 10 10B

PAG Dividend-Like Income Using Covered Calls

With PAG at 153.45, 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% 4.60 1.3
5% 7.67 2.1
10% 15.35 4.2

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 PAG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 165.00 0.85 23 3.7 1.80 (1.2%)
Jun 21 165.00 2.10 58 3.6 1.80 (1.2%)
5% Yield On PAG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 165.00 0.85 23 3.7 1.80 (1.2%)
Jun 21 165.00 2.10 58 3.6 1.80 (1.2%)
10% Yield On PAG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 165.00 5.10 114 4.5 1.80 (1.2%)

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