PBR.A Dividend Type Payments
Although PBR.A has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Petroleo Brasileiro S.A.- Petrobras American Depositary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
Petroleo Brasileiro S.A.- Petrobras American Depositary Shares (PBR.A) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
14.91 |
14.92 |
14.90 |
+0.24 |
4.4M |
7.4 |
27B |
PBR.A Dividend-Like Income Using Covered Calls
With PBR.A at 14.90, 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% |
0.45 |
0.1 |
5% |
0.75 |
0.2 |
10% |
1.49 |
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.A Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Apr 19 |
15.00 |
0.30 |
23 |
1.3 |
0.08 (0.5%) |
May 17 |
15.00 |
0.40 |
51 |
0.8 |
0.08 (0.5%) |
5% Yield On PBR.A Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Apr 19 |
15.00 |
0.30 |
23 |
1.3 |
0.08 (0.5%) |
May 17 |
15.00 |
0.40 |
51 |
0.8 |
0.08 (0.5%) |
10% Yield On PBR.A Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Apr 19 |
15.00 |
0.30 |
23 |
1.3 |
0.08 (0.5%) |
May 17 |
15.00 |
0.40 |
51 |
0.8 |
0.08 (0.5%) |
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