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 4:16 PM ET):
| Penske Automotive Group, Inc. (PAG) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 154.86 | 171.71 | 166.68 | +4.78 | 193K | 11 | 11B |
PAG Dividend-Like Income Using Covered Calls
With PAG at 166.68, 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% | 5.00 | 1.4 |
| 5% | 8.33 | 2.3 |
| 10% | 16.67 | 4.6 |
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 20 | 175.00 | 0.35 | 15 | 2.3 | 3.29 (2.0%) | |
| Mar 20 | 175.00 | 1.65 | 43 | 3.8 | 3.29 (2.0%) | |
| 5% Yield On PAG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 20 | 175.00 | 0.35 | 15 | 2.3 | 3.29 (2.0%) | |
| Mar 20 | 175.00 | 1.65 | 43 | 3.8 | 3.29 (2.0%) | |
| 10% Yield On PAG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 15 | 175.00 | 4.80 | 99 | 4.8 | 3.29 (2.0%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | QQQ dividend | 1. | OCUL dividend | |
| 2. | KWEB dividend | 7. | SPY dividend | 2. | APLD dividend | |
| 3. | NVDA dividend | 8. | EWZ dividend | 3. | AXTI dividend | |
| 4. | IBIT dividend | 9. | TLT dividend | 4. | U dividend | |
| 5. | GLD dividend | 10. | INTC dividend | 5. | QS dividend | |
Want more examples? PACB Dividend | PAGP Dividend
