PAGS Dividend Type Payments
Although PAGS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PagSeguro Digital Ltd. Class A Common Shares 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):
PagSeguro Digital Ltd. Class A Common Shares (PAGS) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
11.00 |
12.50 |
11.69 |
-0.16 |
3.4M |
12 |
3.9B |
PAGS Dividend-Like Income Using Covered Calls
With PAGS at 11.69, 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% |
0.35 |
0.1 |
5% |
0.58 |
0.2 |
10% |
1.17 |
0.3 |
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 PAGS Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
13.00 |
0.05 |
24 |
0.2 |
0.50 (4.3%) |
Jun 21 |
13.00 |
0.30 |
59 |
0.5 |
0.50 (4.3%) |
5% Yield On PAGS Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
13.00 |
0.05 |
24 |
0.2 |
0.50 (4.3%) |
Jun 21 |
13.00 |
0.30 |
59 |
0.5 |
0.50 (4.3%) |
10% Yield On PAGS Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Jun 21 |
13.00 |
0.30 |
59 |
0.5 |
0.50 (4.3%) |
Aug 16 |
13.00 |
0.60 |
115 |
0.5 |
0.50 (4.3%) |
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