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 Thu 10:45 AM ET):

Pfizer, Inc (PFE)
Bid Ask Last Change Volume P/E Market Cap
38.79 38.80 38.79 -1.09 16.1M 21 221B

PFE Dividend-Like Income Using Covered Calls

With PFE at 38.79, 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% 1.16 0.3
5% 1.94 0.5
10% 3.88 1.1

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
Apr 26 41.00 0.03 9 0.3 2.20 (5.7%)
May 3 42.00 0.06 16 0.4 3.20 (8.2%)
5% Yield On PFE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 26 40.50 0.08 9 0.9 1.70 (4.4%)
May 3 41.50 0.09 16 0.6 2.70 (7.0%)
10% Yield On PFE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 26 40.00 0.16 9 1.8 1.20 (3.1%)
May 3 40.50 0.27 16 1.7 1.70 (4.4%)

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Top 10 Open Interest For May 17 Expiration     Top 5 High Yield
1.COTY dividend 6.BAC dividend   1.SNAP dividend
2.SPY dividend 7.QQQ dividend   2.TLRY dividend
3.EEM dividend 8.EWZ dividend   3.UNH dividend
4.FXI dividend 9.XOP dividend   4.AXSM dividend
5.SPX dividend 10.XLF dividend   5.BCRX dividend

Want more examples? PFBC Dividend | PFF Dividend