PBR Dividend Type Payments

PETROLEO BRASILEIRO SA dividend

Although PBR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PETROLEO BRASILEIRO SA 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):

PETROLEO BRASILEIRO SA (PBR)
Bid Ask Last Change Volume P/E Market Cap
16.00 16.10 16.06 +0.08 26.2M 32 95B

PBR Dividend-Like Income Using Covered Calls

With PBR at 16.06, 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% 0.48 0.1
5% 0.80 0.2
10% 1.61 0.4

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 PBR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 17.00 0.01 3 0.3 0.90 (5.6%)
Oct 26 18.00 0.02 10 0.2 1.90 (11.8%)
5% Yield On PBR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 17.00 0.01 3 0.3 0.90 (5.6%)
Oct 26 17.50 0.05 10 0.5 1.40 (8.7%)
10% Yield On PBR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 16.50 0.07 3 2.3 0.40 (2.5%)
Oct 26 17.50 0.05 10 0.5 1.40 (8.7%)

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Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.PBR dividend   1.CLVS dividend
2.SPX dividend 7.MU dividend   2.SKX dividend
3.QQQ dividend 8.FXI dividend   3.CLF dividend
4.EEM dividend 9.IWM dividend   4.CRBP dividend
5.BAC dividend 10.AMD dividend   5.TLRY dividend

Want more examples? PBPB Dividend | PBR.A Dividend