PAGP Dividend Type Payments

Plains Group Holdings LP dividend

Although PAGP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Plains Group Holdings LP 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):

Plains Group Holdings LP (PAGP)
Bid Ask Last Change Volume P/E Market Cap
24.55 25.23 24.55 -0.47 558K 12 4.0B

PAGP Dividend-Like Income Using Covered Calls

With PAGP at 24.55, 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% 0.74 0.2
5% 1.23 0.3
10% 2.46 0.7

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 PAGP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 26.00 0.15 28 0.5 0.77 (3.1%)
May 17 27.00 0.20 57 0.4 1.77 (7.2%)
5% Yield On PAGP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 26.00 0.15 28 0.5 0.77 (3.1%)
May 17 27.00 0.20 57 0.4 1.77 (7.2%)
10% Yield On PAGP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 26.00 0.40 57 0.7 0.77 (3.1%)

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