PFLT Dividend

Although PFLT has a dividend of 0.10 with an ex-dividend date of Mar 19, you can sell covered calls on Pennantpark Floating Rate 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):

Pennantpark Floating Rate (PFLT)
Bid Ask Last Change Volume P/E Market Cap
12.90 13.00 12.98 +0.07 341K 11 0.5B

PFLT Dividend-Like Income Using Covered Calls

With PFLT at 12.98, 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% 0.39 0.1
5% 0.65 0.2
10% 1.30 0.4

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 Apr 18 Expiration     Top 5 High Yield
1.SPY dividend 6.USO dividend   1.BCRX dividend
2.EEM dividend 7.BMY dividend   2.MU dividend
3.SPX dividend 8.AAPL dividend   3.TLRY dividend
4.QQQ dividend 9.NIO dividend   4.PFE dividend
5.FXI dividend 10.EWZ dividend   5.ACB dividend

Want more examples? PFIG Dividend | PFM Dividend