PFLT Dividend Type Payments
Although PFLT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PennantPark Floating Rate Capital Ltd. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| PennantPark Floating Rate Capital Ltd. (PFLT) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 8.81 | 8.92 | 8.86 | 0.00 | 956K | 11 | 0.9B |
PFLT Dividend-Like Income Using Covered Calls
With PFLT at 8.86, 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% | 0.27 | 0.1 |
| 5% | 0.44 | 0.1 |
| 10% | 0.89 | 0.2 |
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 PFLT Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 20 | 10.00 | 0.10 | 122 | 0.1 | 1.08 (12.2%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | TLT dividend | 1. | BHVN dividend | |
| 2. | KVUE dividend | 7. | HYG dividend | 2. | UUUU dividend | |
| 3. | NVDA dividend | 8. | EEM dividend | 3. | SOUN dividend | |
| 4. | SLV dividend | 9. | QQQ dividend | 4. | INBX dividend | |
| 5. | GLD dividend | 10. | INTC dividend | 5. | CIFR dividend | |
Want more examples? PFLD Dividend | PFM Dividend
