PBF Dividend Type Payments

PBF Energy Inc. Class A dividend

Although PBF has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PBF Energy 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 Wed 4:16 PM ET):

PBF Energy Inc. Class A (PBF)
Bid Ask Last Change Volume P/E Market Cap
29.37 30.88 30.50 -0.12 4.2M - 3.5B

PBF Dividend-Like Income Using Covered Calls

With PBF at 30.50, 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% 0.92 0.3
5% 1.53 0.4
10% 3.05 0.8

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
Oct 17 31.00 1.85 31 6.0 0.12 (0.4%)
Sep 19 31.00 0.40 3 13.3 0.12 (0.4%)
5% Yield On PBF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 31.00 1.85 31 6.0 0.12 (0.4%)
Sep 19 31.00 0.40 3 13.3 0.12 (0.4%)
10% Yield On PBF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 31.00 1.85 31 6.0 0.12 (0.4%)
Sep 19 31.00 0.40 3 13.3 0.12 (0.4%)

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