PDCO Dividend Type Payments

Patterson Companies, Inc dividend

Although PDCO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Patterson Companies, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 3:10 PM ET):

Patterson Companies, Inc (PDCO)
Bid Ask Last Change Volume P/E Market Cap
22.82 22.83 22.82 +0.28 1.5M - 0.0B

PDCO Dividend-Like Income Using Covered Calls

With PDCO at 22.82, 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% 0.68 0.2
5% 1.14 0.3
10% 2.28 0.6

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 PDCO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 25.00 0.05 11 0.5 2.17 (9.5%)
Jan 18 26.00 0.15 39 0.4 3.17 (13.9%)
5% Yield On PDCO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 25.00 0.05 11 0.5 2.17 (9.5%)
Jan 18 26.00 0.15 39 0.4 3.17 (13.9%)
10% Yield On PDCO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 24.00 0.20 11 1.8 1.17 (5.1%)
Jan 18 25.00 0.30 39 0.8 2.17 (9.5%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.DUST dividend 6.NSSC dividend   1. dividend
2.NOVT dividend 7.MOD dividend   2. dividend
3.MMS dividend 8.VV dividend   3. dividend
4.VSI dividend 9.EC dividend   4. dividend
5.DXJS dividend 10.NTWK dividend   5. dividend

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