PFE Dividend Type Payments
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 Fri 4:16 PM ET):
| Pfizer, Inc. (PFE) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 30.72 | 30.74 | 30.77 | +1.01 | 34.3M | - | 171B |
PFE Dividend-Like Income Using Covered Calls
With PFE at 30.77, 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% | 0.92 | 0.3 |
| 5% | 1.54 | 0.4 |
| 10% | 3.08 | 0.8 |
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 | |
| Aug 2 | 31.00 | 0.58 | 8 | 7.3 | 0.26 (0.8%) | |
| Aug 9 | 31.00 | 0.68 | 15 | 4.5 | 0.26 (0.8%) | |
| 5% Yield On PFE Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 2 | 31.00 | 0.58 | 8 | 7.3 | 0.26 (0.8%) | |
| Aug 9 | 31.00 | 0.68 | 15 | 4.5 | 0.26 (0.8%) | |
| 10% Yield On PFE Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 2 | 31.00 | 0.58 | 8 | 7.3 | 0.26 (0.8%) | |
| Aug 9 | 31.00 | 0.68 | 15 | 4.5 | 0.26 (0.8%) | |
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| Top 10 Open Interest For Aug 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | SNAP dividend | |
| 2. | IWM dividend | 7. | SIRI dividend | 2. | TDOC dividend | |
| 3. | QQQ dividend | 8. | AAPL dividend | 3. | NET dividend | |
| 4. | FXI dividend | 9. | AMZN dividend | 4. | CLSK dividend | |
| 5. | SPY dividend | 10. | SLV dividend | 5. | TEAM dividend | |
Want more examples? PFC Dividend | PFF Dividend
