PAYC Dividend Type Payments

Paycom Software, Inc dividend

Although PAYC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Paycom Software, Inc 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):

Paycom Software, Inc (PAYC)
Bid Ask Last Change Volume P/E Market Cap
230.01 237.99 232.81 -9.24 608K 99 14B

PAYC Dividend-Like Income Using Covered Calls

With PAYC at 232.81, 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% 6.98 1.9
5% 11.64 3.2
10% 23.28 6.4

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 PAYC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 270.00 1.15 29 4.0 32.01 (13.7%)
Nov 15 300.00 2.65 120 2.2 62.01 (26.6%)
5% Yield On PAYC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 270.00 1.15 29 4.0 32.01 (13.7%)
Nov 15 280.00 5.20 120 4.3 42.01 (18.0%)
10% Yield On PAYC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 260.00 2.35 29 8.1 22.01 (9.5%)
Nov 15 260.00 9.80 120 8.2 22.01 (9.5%)

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Top 10 Open Interest For Aug 16 Expiration     Top 5 High Yield
1.SPY dividend 6.QQQ dividend   1.SNAP dividend
2.FXI dividend 7.NIO dividend   2.HAL dividend
3.EEM dividend 8.BAC dividend   3.ITCI dividend
4.SPX dividend 9.GLD dividend   4.TWTR dividend
5.GDX dividend 10.EWZ dividend   5.CRWD dividend

Want more examples? PATK Dividend | PAYX Dividend