PBA Dividend

Although PBA has a dividend of 0.14 with an ex-dividend date of Dec 28, you can sell covered calls on Pembina Pipeline Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

Pembina Pipeline Corp (PBA)
Bid Ask Last Change Volume P/E Market Cap
30.26 34.99 32.00 -0.83 702K - 0.0B

PBA Dividend-Like Income Using Covered Calls

With PBA at 32.00, 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% 0.96 0.3
5% 1.60 0.4
10% 3.20 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 PBA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 35.00 0.40 152 0.3 0.01 (0.0%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.SPY dividend 6.EWZ dividend   1. dividend
2.EEM dividend 7.FXI dividend   2. dividend
3.SPX dividend 8.GE dividend   3. dividend
4.QQQ dividend 9.BAC dividend   4. dividend
5.IWM dividend 10.VXX dividend   5. dividend

Want more examples? PB Dividend | PBCT Dividend