PDCE Dividend Type Payments

PDC ENERGY dividend

Although PDCE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PDC ENERGY 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):

PDC ENERGY (PDCE)
Bid Ask Last Change Volume P/E Market Cap
45.53 59.89 50.55 +0.68 1.2M - 3.3B

PDCE Dividend-Like Income Using Covered Calls

With PDCE at 50.55, 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% 1.52 0.4
5% 2.53 0.7
10% 5.06 1.4

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 PDCE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 60.00 0.25 37 0.7 0.11 (0.2%)
Oct 19 60.00 0.65 65 1.0 0.11 (0.2%)
5% Yield On PDCE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 60.00 0.65 65 1.0 0.11 (0.2%)
Jan 18 65.00 1.15 156 0.7 5.11 (10.1%)

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Want more examples? PCYO Dividend | PDCO Dividend