PAG Dividend Type Payments
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 Fri 9:35 AM ET):
| Penske Automotive Group, Inc. (PAG) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 157.60 | 161.88 | 159.75 | +1.07 | 2K | 11 | 11B |
PAG Dividend-Like Income Using Covered Calls
With PAG at 159.75, 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% | 4.79 | 1.3 |
| 5% | 7.99 | 2.2 |
| 10% | 15.98 | 4.4 |
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 PAG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 165.00 | 5.20 | 99 | 5.3 | 3.12 (2.0%) | |
| Jun 20 | 165.00 | 0.85 | 43 | 2.0 | 3.12 (2.0%) | |
| 5% Yield On PAG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 165.00 | 5.20 | 99 | 5.3 | 3.12 (2.0%) | |
| Nov 21 | 165.00 | 10.10 | 197 | 5.1 | 3.12 (2.0%) | |
| 10% Yield On PAG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 165.00 | 5.20 | 99 | 5.3 | 3.12 (2.0%) | |
| Nov 21 | 165.00 | 10.10 | 197 | 5.1 | 3.12 (2.0%) | |
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | AFRM dividend | |
| 2. | SPY dividend | 7. | TSLA dividend | 2. | EOSE dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | NVAX dividend | |
| 4. | QQQ dividend | 9. | GLD dividend | 4. | TEM dividend | |
| 5. | IWM dividend | 10. | INTC dividend | 5. | HIMS dividend | |
Want more examples? PACB Dividend | PAGP Dividend
