PBF Dividend Type Payments

PBF ENERGY dividend

Although PBF has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PBF ENERGY 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):

PBF ENERGY (PBF)
Bid Ask Last Change Volume P/E Market Cap
44.71 50.56 46.56 +0.95 1.4M 5.9 5.2B

PBF Dividend-Like Income Using Covered Calls

With PBF at 46.56, 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% 1.40 0.4
5% 2.33 0.6
10% 4.66 1.3

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 PBF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 55.00 0.80 124 0.6 4.44 (9.5%)
Jan 18 55.00 1.15 152 0.8 4.44 (9.5%)
5% Yield On PBF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 55.00 0.80 124 0.6 4.44 (9.5%)
Jan 18 55.00 1.15 152 0.8 4.44 (9.5%)

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Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
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3.SPX dividend 8.FB dividend   3.UVXY dividend
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5.XLF dividend 10.GDX dividend   5.LB dividend

Want more examples? PBE Dividend | PBFX Dividend