PANW Dividend Type Payments

PALO ALTO NETWORKS dividend

Although PANW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PALO ALTO NETWORKS 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):

PALO ALTO NETWORKS (PANW)
Bid Ask Last Change Volume P/E Market Cap
211.52 214.00 213.09 +2.59 933K - 20B

PANW Dividend-Like Income Using Covered Calls

With PANW at 213.09, 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% 6.39 1.8
5% 10.65 2.9
10% 21.31 5.8

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 PANW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 225.00 0.17 8 2.1 11.00 (5.2%)
Aug 31 227.50 0.41 15 2.7 13.50 (6.3%)
5% Yield On PANW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 222.50 0.35 8 4.4 8.50 (4.0%)
Aug 31 225.00 0.66 15 4.4 11.00 (5.2%)
10% Yield On PANW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 220.00 0.66 8 8.3 6.00 (2.8%)
Aug 31 222.50 0.97 15 6.5 8.50 (4.0%)

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