PAY Dividend Type Payments

Although PAY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Paymentus Holdings, Inc. Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

Paymentus Holdings, Inc. Class A (PAY)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
30.00	33.15	31.35	-0.54	813K	68	4.8B

PAY Dividend-Like Income Using Covered Calls

With PAY at 31.35, 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%	0.94	0.3
5%	1.57	0.4
10%	3.14	0.9

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 PAY Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 16	34.00	0.10	18	0.6	0.85 (2.7%)
Jun 18	33.00	3.60	171	2.0	0.00 (0.0%)

5% Yield On PAY Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 16	34.00	0.10	18	0.6	0.85 (2.7%)
Jun 18	33.00	3.60	171	2.0	0.00 (0.0%)

10% Yield On PAY Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jun 18	33.00	3.60	171	2.0	0.00 (0.0%)
Feb 20	33.00	0.95	53	1.5	0.00 (0.0%)

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Want more examples? PAVE Dividend | PAYC Dividend