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 Fri 3:15 PM ET):

Paymentus Holdings, Inc. Class A (PAY)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
32.18	32.29	32.20	-1.52	294K	84	4.2B

PAY Dividend-Like Income Using Covered Calls

With PAY at 32.20, 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%	0.97	0.3
5%	1.61	0.4
10%	3.22	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
Aug 15	33.00	1.85	50	3.7	0.71 (2.2%)
Oct 17	33.00	3.80	113	3.4	0.71 (2.2%)

5% Yield On PAY Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	33.00	1.85	50	3.7	0.71 (2.2%)
Oct 17	33.00	3.80	113	3.4	0.71 (2.2%)

10% Yield On PAY Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	33.00	1.85	50	3.7	0.71 (2.2%)
Oct 17	33.00	3.80	113	3.4	0.71 (2.2%)

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Want more examples? PAVE Dividend | PAYC Dividend