PETQ Dividend Type Payments
Although PETQ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PetIQ, Inc. - Class A 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):
PetIQ, Inc. - Class A (PETQ) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
17.71 |
18.50 |
18.28 |
+0.84 |
324K |
249 |
0.5B |
PETQ Dividend-Like Income Using Covered Calls
With PETQ at 18.28, here's a table showing how big the annual "dividend" (i.e. 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% |
0.55 |
0.2 |
5% |
0.91 |
0.3 |
10% |
1.83 |
0.5 |
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 PETQ Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Apr 19 |
20.00 |
0.10 |
23 |
0.4 |
1.50 (8.2%) |
May 17 |
20.00 |
0.70 |
51 |
1.4 |
1.50 (8.2%) |
5% Yield On PETQ Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Apr 19 |
20.00 |
0.10 |
23 |
0.4 |
1.50 (8.2%) |
May 17 |
20.00 |
0.70 |
51 |
1.4 |
1.50 (8.2%) |
10% Yield On PETQ Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
20.00 |
0.70 |
51 |
1.4 |
1.50 (8.2%) |
Jul 19 |
20.00 |
1.05 |
114 |
0.9 |
1.50 (8.2%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial