PCRX Dividend Type Payments

PACIRA PHARMACEUTICALS dividend

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

PACIRA PHARMACEUTICALS (PCRX)
Bid Ask Last Change Volume P/E Market Cap
42.50 52.96 45.32 +1.18 355K - 1.8B

PCRX Dividend-Like Income Using Covered Calls

With PCRX at 45.32, 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% 1.36 0.4
5% 2.27 0.6
10% 4.53 1.2

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 PCRX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 55.00 0.35 33 1.1 2.04 (4.5%)
Feb 15 60.00 0.85 124 0.7 7.04 (15.5%)
5% Yield On PCRX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 55.00 0.35 33 1.1 2.04 (4.5%)
Feb 15 60.00 0.85 124 0.7 7.04 (15.5%)
10% Yield On PCRX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 15 55.00 1.70 124 1.4 2.04 (4.5%)
May 17 57.50 2.70 215 1.3 4.54 (10.0%)

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Want more examples? PCOM Dividend | PCSB Dividend