PEN Dividend Type Payments

Although PEN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PENUMBRA INC 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):

PENUMBRA INC (PEN)
Bid Ask Last Change Volume P/E Market Cap
64.45 128.75 121.55 -2.80 263K 148 4.3B

PEN Dividend-Like Income Using Covered Calls

With PEN at 121.55, 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% 3.65 1.0
5% 6.08 1.7
10% 12.16 3.3

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 PEN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 135.00 0.05 5 1.0 6.25 (5.1%)
Sep 21 140.00 0.50 40 1.3 11.25 (9.3%)
5% Yield On PEN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 130.00 0.10 5 2.0 1.25 (1.0%)
Sep 21 135.00 1.20 40 3.0 6.25 (5.1%)
10% Yield On PEN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 130.00 2.40 40 6.0 1.25 (1.0%)
Oct 19 135.00 2.60 68 3.8 6.25 (5.1%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.BAC dividend   1.SSTK dividend
2.EEM dividend 7.AABA dividend   2.UVXY dividend
3.QQQ dividend 8.FXI dividend   3.VIPS dividend
4.SPX dividend 9.GLD dividend   4.HUYA dividend
5.XLF dividend 10.FB dividend   5.SWCH dividend

Want more examples? PEK Dividend | PENN Dividend