PAHC Dividend
Although PAHC has a dividend of 0.12 with an ex-dividend date of Jun 4, you can sell covered calls on Phibro Animal Health Corporation - Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 2:20 PM ET):
| Phibro Animal Health Corporation - Class A (PAHC) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 24.17 |
24.28 |
24.26 |
+1.79 |
108K |
29 |
0.9B |
PAHC Dividend-Like Income Using Covered Calls
With PAHC at 24.26, 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% |
0.73 |
0.2 |
| 5% |
1.21 |
0.3 |
| 10% |
2.43 |
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 PAHC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
25.00 |
0.70 |
131 |
0.5 |
0.72 (3.0%) |
| Dec 19 |
25.00 |
0.90 |
222 |
0.4 |
0.72 (3.0%) |
| 5% Yield On PAHC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
25.00 |
0.70 |
131 |
0.5 |
0.72 (3.0%) |
| Dec 19 |
25.00 |
0.90 |
222 |
0.4 |
0.72 (3.0%) |
| 10% Yield On PAHC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 20 |
25.00 |
0.60 |
40 |
1.5 |
0.72 (3.0%) |
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