PFE Dividend Type Payments

Pfizer, Inc dividend

Although PFE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Pfizer, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 12:00 PM ET):

Pfizer, Inc (PFE)
Bid Ask Last Change Volume P/E Market Cap
43.60 43.61 43.60 -0.06 5.5M 22 243B

PFE Dividend-Like Income Using Covered Calls

With PFE at 43.60, 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% 1.31 0.4
5% 2.18 0.6
10% 4.36 1.2

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 PFE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 28 45.00 0.02 5 0.4 1.39 (3.2%)
Jul 5 45.00 0.07 12 0.6 1.39 (3.2%)
5% Yield On PFE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 28 44.50 0.07 5 1.4 0.89 (2.0%)
Jul 5 44.50 0.16 12 1.3 0.89 (2.0%)
10% Yield On PFE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 28 44.50 0.07 5 1.4 0.89 (2.0%)
Jul 5 44.50 0.16 12 1.3 0.89 (2.0%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Jul 19 Expiration     Top 5 High Yield
1.SPY dividend 6.USO dividend   1.ITCI dividend
2.SPX dividend 7.OIH dividend   2.BB dividend
3.EEM dividend 8.QCOM dividend   3.BYND dividend
4.QQQ dividend 9.FXI dividend   4.MU dividend
5.IWM dividend 10.AAPL dividend   5.KPTI dividend

Want more examples? PFBC Dividend | PFF Dividend