PFF Dividend Type Payments

iShares S&P US PR STOCK dividend

Although PFF has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares S&P US PR STOCK 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):

Bid Ask Last Change Volume P/E Market Cap
37.08 37.18 37.15 +0.05 1.4M - 164B

PFF Dividend-Like Income Using Covered Calls

With PFF at 37.15, 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% 1.11 0.3
5% 1.86 0.5
10% 3.72 1.0

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:

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Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.AMD dividend   1.GERN dividend
2.EEM dividend 7.FXI dividend   2.MDXG dividend
3.SPX dividend 8.BABA dividend   3.TLRY dividend
4.MU dividend 9.USO dividend   4.AKRX dividend
5.FTV dividend 10.GLD dividend   5.ANAB dividend

Want more examples? PFE Dividend | PFFA Dividend