PAG Dividend

PENSKE AUTOMOTIVE GROUP dividend

Although PAG has a dividend of 0.37 with an ex-dividend date of Nov 8, you can sell covered calls on PENSKE AUTOMOTIVE GROUP 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):

PENSKE AUTOMOTIVE GROUP (PAG)
Bid Ask Last Change Volume P/E Market Cap
42.50 47.19 44.08 -0.89 549K 5.8 3.8B

PAG Dividend-Like Income Using Covered Calls

With PAG at 44.08, 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% 1.32 0.4
5% 2.20 0.6
10% 4.41 1.2

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
Feb 15 50.00 0.80 122 0.7 2.81 (6.4%)
May 17 50.00 1.50 213 0.7 2.81 (6.4%)
5% Yield On PAG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 15 50.00 0.80 122 0.7 2.81 (6.4%)
May 17 50.00 1.50 213 0.7 2.81 (6.4%)

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Want more examples? PAF Dividend | PAGP Dividend