PCG Dividend Type Payments

PG&E dividend

Although PCG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PG&E to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 11:00 AM ET):

PG&E (PCG)
Bid Ask Last Change Volume P/E Market Cap
46.81 46.83 46.82 -0.10 2.0M 203 24B

PCG Dividend-Like Income Using Covered Calls

With PCG at 46.82, 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% 2.34 0.6
10% 4.68 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 PCG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 28 49.50 0.05 8 0.6 2.67 (5.7%)
Oct 5 50.00 0.15 15 1.0 3.17 (6.8%)
5% Yield On PCG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 28 49.00 0.10 8 1.3 2.17 (4.6%)
Oct 5 50.00 0.15 15 1.0 3.17 (6.8%)
10% Yield On PCG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 28 48.50 0.15 8 1.9 1.67 (3.6%)
Oct 5 49.00 0.30 15 2.0 2.17 (4.6%)

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