PCTY Dividend Type Payments

PAYLOCITY HOLDING CORP dividend

Although PCTY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PAYLOCITY HOLDING CORP 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):

PAYLOCITY HOLDING CORP (PCTY)
Bid Ask Last Change Volume P/E Market Cap
57.00 66.13 66.13 -0.87 161K 91 3.5B

PCTY Dividend-Like Income Using Covered Calls

With PCTY at 66.13, 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% 1.98 0.5
5% 3.31 0.9
10% 6.61 1.8

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 PCTY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 70.00 1.05 38 2.8 3.87 (5.9%)
Nov 16 80.00 0.75 94 0.8 13.87 (21.0%)
5% Yield On PCTY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 70.00 1.05 38 2.8 3.87 (5.9%)
Nov 16 75.00 1.30 94 1.4 8.87 (13.4%)
10% Yield On PCTY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 70.00 1.05 38 2.8 3.87 (5.9%)
Nov 16 70.00 2.85 94 3.0 3.87 (5.9%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.XLF dividend   1.NVDA dividend
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3.QQQ dividend 8.FXI dividend   3.JWN dividend
4.SPX dividend 9.GLD dividend   4.GDS dividend
5.BAC dividend 10.AABA dividend   5.AMAT dividend

Want more examples? PCTI Dividend | PCY Dividend